MIRA INFORM REPORT

 

 

Report Date :

03.04.2013

 

IDENTIFICATION DETAILS

 

Name :

UPM RAFLATAC PTY LTD

 

 

Registered Office :

41-45 Mills Road, Braeside, Victoria 3195

 

 

Country :

Australia.

 

 

Financials (as on) :

31.12.2011

 

 

Date of Incorporation :

08.05.1985

 

 

Legal Form :

Australian Proprietary Company

 

 

Line of Business :

Manufacturing and distribution of paper products.

 

 

No. of Employees :

74

 

 

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 :

Usually 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 – June 30th, 2012

 

Country Name

Previous Rating

(31.03.2012)

Current Rating

(30.06.2012)

Australia.

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

Australia - ECONOMIC OVERVIEW

 

Australia's abundant and diverse natural resources attract high levels of foreign investment and include extensive reserves of coal, iron ore, copper, gold, natural gas, uranium, and renewable energy sources. A series of major investments, such as the US$40 billion Gorgon Liquid Natural Gas project, will significantly expand the resources sector. Australia also has a large services sector and is a significant exporter of natural resources, energy, and food. Key tenets of Australia''s trade policy include support for open trade and the successful culmination of the Doha Round of multilateral trade negotiations, particularly for agriculture and services. The Australian economy grew for 17 consecutive years before the global financial crisis. Subsequently, the former RUDD government introduced a fiscal stimulus package worth over US$50 billion to offset the effect of the slowing world economy, while the Reserve Bank of Australia cut interest rates to historic lows. These policies - and continued demand for commodities, especially from China - helped the Australian economy rebound after just one quarter of negative growth. The economy grew by 1.4% during 2009 - the best performance in the OECD - by 2.7% in 2010, and by 1.8% in 2011. Unemployment, originally expected to reach 8-10%, peaked at 5.7% in late 2009 and fell to 5.0% in 2011. As a result of an improved economy, the budget deficit is expected to peak below 4.2% of GDP and the government could return to budget surpluses as early as 2015. Australia was one of the first advanced economies to raise interest rates, with seven rate hikes between October 2009 and November 2010. The GILLARD government is focused on raising Australia''s economic productivity to ensure the sustainability of growth, and continues to manage the symbiotic, but sometimes tense, economic relationship with China. Australia is engaged in the Trans-Pacific Partnership talks and ongoing free trade agreement negotiations with China, Japan, and Korea.

 

Source : CIA

 


IDENTIFICATION DETAILS

 

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 60,886,824 (Non-consolidated 12 months, 31/12/2011)

Net income :                              AUD 978,843 (Non-consolidated 12 months, 31/12/2011)

Total fixed assets :                     AUD 41,586,011 (Non-consolidated 12 months, 31/12/2011)

Line of business :                       Manufacturing & distribution of paper products.

Staff employed :                         74 employees (Subject); 22,068 employees (UPM-Kymenne Group)

 

 

Company Analysis

 

Country risk :                             Country risk is minimal

Operation trend :                        Operational trend is steady

Management experience :           Management is adequately experienced

Financial performance :              Financial performance is good

Organization structure :              Organizational structure is stable

Detrimental :                  No detrimental found

Payment history :                      No payment delays noted

 

 

STATUTORY DETAILS

 

Registry Data

Registration date :                                              08/05/1985

Legal form : Australia Company Number:             006406435

Registration no                                                  Australian Proprietary Company

Registered authority :                                         Australian Securities and Investments Commission

Fiscal/ Tax no : Australia 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. (initial)

Change of legal form :                                         None reported.

 

 

MANAGEMENT / DIRECTORS

 

Key Management

Name : Jouni Komulainen

Designation : Managing Director

BOARD OF DIRECTORS/ OTHER APPOINTMENTS

Appointments

Name : Raul Ikonen

Designation : Director

Appointment date : 07/04/09

Address : 999 Jianhe Lu, Green Valley Villas, House 30

Shanghai 200336

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 : Room 2806, No.2, Lane 133, Guang Fu Xi Road

Shanghai

China

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

Staff employed : 74 employees (Subject); 22,068 employees (UPM-Kymenne Group)

 

Key Advisors

Auditors : PRICEWATERHOUSECOOPERS

Freshwater Place

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 : 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 :      UPM-Kymmene Oyj manufactures and sells printing and writing papers. It

operates in Energy, Pulp, Forest and Timber, Paper, Label, Plywood, and Other

Operations. The company offers magazine papers, newsprint and fine papers,

and specialty papers to publishers, retailers, printers, distributors, and paper

converters. It is also involved in the generation of electricity through hydro,

nuclear, and condensing power generation assets with total generating capacity

of approximately 1,714 MW in the Nordic and central European energy markets;

and electricity distribution activities. In addition, the company produces renewable

biofuels; provides pulp products consisting of northern softwood and hardwood

pulp, and eucalyptus pulp; manages owned forests, as well as offers forest

services for private forest owners; and manufactures sawn pine and spruce

timber and further processed products for the construction and joinery industries.

Further, it provides self-adhesive label materials used for product and information

labeling in food and beverage, retail and logistics, and personal and home care

industries; plywood and veneer products to building, construction, transport,

furniture, parquet, and other industries under the WISA brand; and UPM ProFi, a

wood-plastic composite product for various end uses. The company has

operations in the European Union countries, North and South America, and Asia.

UPM-Kymmene Oyj was founded in 1995 and is headquartered in Helsinki,

Finland.

Name : RAFLATAC OY

Affiliation type : Parent Company

Address : Tesomankatu 31

33310 Tampere

Finland

Comments : UPM Raflatac Oy supplies pressure sensitive labelstock products and

self-adhesive label materials for product and information labeling internationally. It

also develops and manufactures radio frequency identification (RFID) tags and

inlays. The company was incorporated in 1996 and is based in Tampere, Finland.

UPM Raflatac Oy operates as a subsidiary of UPM-Kymmene Oyj.

Name : UPM RAFLATAC NZ LTD

Affiliation type : Sister Company

Address : 77D Carbine Road, Mt Wellington 1060

PO Box 12-125 Penrose

1064 Auckland

New Zealand

Name : UPM RAFLATAC CO., LTD.

Affiliation type : Sister Company

Address : 470 Moo 5 T. Phraeksamai

10280 Bangkok

Thailand

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

Related companies and corporate

affiliations comments

: Other companies of the Upm-Kymenne Group should be considered affiliated

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 :                   None reported.

Legal Fillings

Bankruptcy fillings :        None reported.

Court judgements :         None reported.

Tax liens :                     None reported.

Others :                        None reported.

 

 

FINANCIAL DATA

 

Description

Source of financial statement :                Commercial Registry Filings

Financial statement date :                      31/12/11

Type of accounts :                                 Full audited

Currency :                                             Australia Dollar (AUD)

Exchange rate :                                     1 USD = AUD 0.95 as of 02-04-2013

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 :          31/12/11                        31/12/10                        31/12/12

Length of accounts :                   12 months                     12 months                     12 months

Sale turnover / Income : 60,886,824                    67,211,068                    10,438,000,000

Profit before tax :                       1,498,313                      5,662,308                      -1,406,000,000

Net income :                              978,843                         3,934,382                      -1,254,000,000

Non current assets :                   2,908,504                      3,754,664                      9,043,000,000

Current assets :                         38,677,507                    36,379,334                    3,850,000,000

Inventories :                               14,916,861                    18,118,059                    1,377,000,000

Total assets :                            41,586,011                    40,133,998                    12,893,000,000

Current liabilities :                      14,261,510                    13,614,390                    2,029,000,000

Non current liabilities :                27,526                          201,476                         4,943,000,000

Total liabilities :                          14,289,036                    13,815,866                    6,972,000,000

Share equity :                            27,296,975                    26,318,132                    5,921,000,000

Retained earning :                      9,245,475                      8,266,632                      3,520,000,000

Comments : The non-consolidated financial information above relates to the Subject only.

The group’s consolidated financial information above relates to the Subject’s

Ultimate Holding Company UPM Kymmene Oyj and all its subsidiaries which

includes the Subject.

 

 

OPERATION DETAILS

 

Main activities :              The Subject engages 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.

Product & services : Labelstock products: high quality film and paper-based label material

Labelling solutions: self-adhesive labels for various products such as

beverages, food, logistics and transport, tyres, retail information labelling

etc.

Brand : UPM Raflatac

Purchases

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

Sales

Local :              Yes

International :     Inter company export to Asia.

Key events :      14 December 2010

UPM RAFLATAC ACHIEVES ISO 14001 CERTIFICATION FOR

LABELSTOCK MANUFACTURING IN AUSTRALIA

UPM Raflatac has received ISO 14001:2004 Environmental Management

Systems certification for its labelstock manufacturing facility in Melbourne,

Australia.

The certification represents a significant step toward achieving one of the

company’s major goals for its facilities worldwide: developing

Environmental Management Systems (EMS) which operate in accordance

with an internationally recognized standard. This means that the Victoria

site joins the ranks of other UPM Raflatac facilities in the United States,

South Africa, Europe and China in setting the label industry’s standard for

excellence in environmental performance.

“UPM Raflatac has long been a leader in environmental sustainability,

making critical investments to reduce the production of waste, ensure the

responsible use of raw materials and promote recycling within the

organization,” says Nicholas Rodgers, responsible for the ISO

certifications at UPM Raflatac Oceania.

From the company’s early work in pioneering the use of solvent-free

adhesives and silicones, to the new RafCycle program for the reduction of

waste going to landfill, UPM Raflatac has moved beyond incremental

improvements in the company’s processes and practices and embedded

environmental sustainability into its business.

The ISO 14001 certification covers the manufacture and slitting of

self-adhesive paper and film labelstock. The factory will be reassessed

annually to ensure that it is achieving its targets and continually improving

its environmental performance. ISO 14001 certification requires that an

organization identifies and controls the environmental aspects and impacts

of its activities, products or services, continually improves its environmental

performance, and implements a systematic approach to setting and

measuring the achievement of its environmental objectives and targets.

The certificate is awarded by the British Standards Institution (BSI).

Source: www.upmraflatac.com

Property & Assets

Premises : The Subject operates from premises at the verified heading address

consisting of production facility, administrative office and warehouse.

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

3 White Avenue

Athol Park, South Australia 5012

Australia

Tel: +61 3 85861377

Fax: +61 3 85863844

2/18 Nevilles Street

Underwood, Queensland 4119

Australia

Tel: +61 7 38905040

Fax: +61 7 38905030

Level 13, 124 Walker Street

North Sydney, New South Wales 2060

Australia

Tel: +61 2 93345000

Fax: +61 2 93345001

Other property : Total NBV of property, plant and equipment as of 31-12-2011 was AUD

2,459,954.

 

 

SUMMARIZED COUNTRY RISK

 

Gross Domestic Products (GDP) & Economic Overview

Central bank :                                        Reserve Bank of Australia

Reserve of foreign exchange & gold :       US$ 43.879 billion

Gross domestic product - GDP :             US$ 1.586 trillion

GPP (Purchasing power parity) :             954.296 billion of International dollars

GDP per capita - current prices :             US$ 68,916

GDP - composition by sector :                agriculture: 4%

industry: 25.6%

services: 70.4%

Inflation :                                               2009: 1.8%

2010: 2.8%

2011: 3.4%

Unemployment rate :                              2009: 5.6%

2010: 5.2%

2011: 5.1%

Public debt

(General Government gross debt as

a % GDP)

: 2009: 16.9%

2010: 20.4%

2011: 22.9%

Government bond ratings :                      Standard & Poor's: AAA/Stable/A-1+

Moody's rating: Aaa

Moody's outlook: STA

Market value of publicly traded

shares

: US$1.258 trillion

Largest companies in the country : Commonwealth Bank (Banking), BHP Billiton (Materials), Westpac Banking

Group (Banking), Rio Tinto (Materials), National Australia Bank (Banking),

ANZ Banking (Banking), Telstra (Telecommunications)

Trade & Competitiveness Overview

Total exports : US$210.7 billion

Exports commodities : Coal, iron ore, gold, meat, wool, alumina, wheat

Total imports : US$187.2 billion

Imports commodities : Machinery and transport equipment, computers and office machines,

telecommunication equipment and parts, crude oil and petroleum products

Export - major partners : Japan 18.9%, China 14.2%, South Korea 8%, US 6%, NZ 5.6%, India

5.5%, UK 4.2%

Import - major partners : China 15.5%, US 12.8%, Japan 9.6%, Singapore 5.6%, Germany 5.2%,

UK 4.3%, Thailand 4.2%

FDI Inflows :                  2008: US$46,843 million

2009: US$25,716 million

2010: US$32,472 million

FDI Outflows :                2008: US$33,604 million

2009: US$16,160 million

2010: US$26,431 million

Best countries for doing business : 10 out of 183 countries

Global competitiveness ranking : 20 (ranking by country on a basis of 142, the first is the best)

 

Country and Population Overview

Total population :           22.23 million

Total area :                    7,692,024 km2

Capital :                        Canberra

Currency :                     Australian dollars (AUD)

Internet users as % of total

population: 76%

 

 

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.54.33

UK Pound

1

Rs.82.72

Euro

1

Rs.69.81

 

 

INFORMATION DETAILS

 

Report Prepared by :

PDT

 

 

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.