MIRA INFORM REPORT

Report Date :

19.04.2014

IDENTIFICATION DETAILS

Name :	MONDI SHANDUKA NEWSPRINT (PTY) LTD
Formerly Known As :	MONDI MILLENNIUM NEWSPRINT (PTY) LTD
Registered Office :	Off Traven Core Drive Merebank Durban KwaZulu-Natal Private Bag X05 Merebank 4059
Country :	South Africa
Date of Incorporation :	24.11.2003
Legal Form :	Private Limited Company
Line of Business :	Manufacture and distribution of news print paper
No. of Employees	145

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 :	No complaints
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, 2014

Country Name	Previous Rating (31.12.2013)	Current Rating (31.03.2014)
South Africa	A2	A2

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

SOUTH AFRICA ECONOMIC OVERVIEW

South Africa is a middle-income, emerging market with an abundant supply of natural resources; well-developed financial, legal, communications, energy, and transport sectors and a stock exchange that is the 15th largest in the world. Even though the country possesses modern infrastructure that support a relatively efficient distribution of goods to major urban centers throughout the region, unstable electricity supplies retard growth. The global financial crisis reduced commodity prices and world demand. GDP fell nearly 2% in 2009 but has recovered since then. Unemployment, poverty, and inequality remain a challenge, with official unemployment at nearly 25% of the work force. Eskom, the state-run power company, has built two new power stations and installed new power demand management programs to improve power grid reliability. South Africa's economic policy has focused on controlling inflation, however, the country has had significant budget deficits that restrict its ability to deal with pressing economic problems. The current government faces growing pressure from special interest groups to use state-owned enterprises to deliver basic services to low-income areas and to increase job growth

Source : CIA

Company name and address

MONDI SHANDUKA NEWSPRINT (PTY) LTD

Formerly

Formerly: MONDI MILLENNIUM NEWSPRINT (PTY) LTD, the name having been changed on 22 September 2004.

Formerly: MAIN STREET 188 (PTY) LTD, the name having been changed on 26 May 2004.

PHYSICAL ADDRESS

Off Traven Core Drive

Merebank

Durban

KwaZulu-Natal

POSTAL ADDRESS

Private Bag X05

Merebank

4059

TELEPHONE NUMBER

+27 31 451 2111

FAX NUMBER

+27 31 461 1343

SHAREHOLDERS

50% MONDI SOUTH AFRICA LIMITED, which in turn is owned by ANGLO OPERATIONS LTD which in turn is owned by ANGLO AMERICAN CORPORATION OF SOUTH AFRICA LIMITED

42% SHANDUKA RESOURCES (PTY) LTD, a company in which STANDARD BANK LTD and C RAMAPHOSA hold shares

4% THE MONDI SHANDUKA COMMUNITY TRUST

4% EMPLOYEES SHARES OWNERSHIP TRUST

ASSOCIATE COMPANIES

Companies within the MONDI, ANGLO AMERICAN and SHANDUKA groups of companies

DIRECTORS

P A LAUBSCHER (chairperson) ID No. 5511185026086

P MAHANYELE (nee MALABIE ID No. 7103150410087

R M SMITH ID No. 6409045037006

D A HATHORN ID No. 6205215098004

R J T TRAILL (CEO) DOB. 540703

J A J LOOTS ID No. 7801175010085

N A KHOBANE Newly appointed

S A HULME Newly appointed

R TRAIL Ppt No. 7049214250000

It was stated by the respondent that the directors are in the process of change

BANKERS

FIRST NATIONAL BANK, Johannesburg Corporate Branch. It was stated that the subject enjoys overdraft facilities, secured by the holding company guarantees. Utilisation is stated to be nil as credit balances are normally maintained at the bank.

DATE REGISTERED

24 November 2003

Registration Certificate Number: 2003/029838/07

The subject was registered to take over the assets and operations of the Newsprint division of MONDI LTD which had been operating for some 25 years.

VAT NUMBER

4590212009

TAX NUMBER

9206668155

MAJOR OPERATION

Manufacture and distribution of news print paper

MAJOR SUPPLIERS

BUCKMAN CHEMICALS Durban

VOITH Durban

CLARIANT SA

EVONIK

NESTLE SA LTD

MAJOR CUSTOMERS OR BUSINESS SECTORS

Newspaper printers, publishers and printing industries

AREA OF DISTRIBUTION AND SELLING

South Africa

EXPORTS

Africa mainly

TOTAL EMPLOYEES

145, Reduced from ±315 due to operations being reduced. It was stated that some employees took early retirement and some were moved to other companies within the group.

OTHER PREMISES

None

OWNED OR LEASED

The premises are reported to be owned by MONDI LTD.

AUTHORISED SHARE CAPITAL

R1 000 divided into 1 000 ordinary shares of R1 each

ISSUED SHARE CAPITAL

R100

FINANCIALS

Current financial information was not forthcoming:-

The following estimated financial situation was submitted as at March 2009:

STOCK R 50 000 000

DEBTORS R 200 000 000

FIXED ASSETS R 650 000 000

BIOLOGICAL ASSETS R 272 000 000

CREDITORS R 100 000 000

LONG TERM LIABILITIES R 540 000 000

SHAREHOLDERS LOANS R 219 000 000

TURNOVER per annum R1 200 000 000

The responded declined to assist with current financial information.

AUDITORS

DELOITTE & TOUCHE

YEAR END

DECEMBER

INSURANCE BROKERS

MARSH INSURANCE BROKERS

TRADE REFERENCES – FEBRUARY 2006

ACCOUNT HIGHEST AVERAGE TERMS PAYMENT EXPERIENCE

OPENED CREDIT CREDIT PATTERN

1. 8 years R2 000 000 R1 700 000 30 days current Very Good

2. Old acc R 87 000 varies 30 days 30 days Good

3. 2004 R 300 000 R 23 000 30 days 30 days Good

c/l

TRADE REFERENCES – OCTOBER 2007

ACCOUNT HIGHEST AVERAGE TERMS PAYMENT EXPERIENCE

OPENED CREDIT CREDIT PATTERN

1. Do not give trade references

2. 3 years declined R 136 000 - 60 days 60 days Very good

R 200 000 varies

3. 15 years R6 000 000 R1 600 000 30 days 30 days Excellent

4. 1996 open R 300 000 - 30 days 30 days Excellent

R 400 000

5. Do not give trade references

TRADE REFERENCES – OCTOBER 2008

ACCOUNT HIGHEST AVERAGE TERMS PAYMENT EXPERIENCE

OPENED CREDIT CREDIT PATTERN

1. Awaiting a fax trade reference

2. Awaiting a fax trade reference

3. 10 years R800 000 R 200 000- 30 days 30 days Good

R 800 000

4. Do not give trade references

5. 2004 R200 000 R 2 000- 60 days 60 days Good

R 200 000

TRADE REFERENCES – MARCH 2009

ACCOUNT HIGHEST AVERAGE TERMS PAYMENT EXPERIENCE

OPENED CREDIT CREDIT PATTERN

1. 10 years R5 000 000 R3 500 000- 30 days 30 days Excellent

R5 000 000

2. 10 years R6 000 000 R1 000 000- 30 days 30 days+ Average

Consignment stock R6 000 000 – needs monitoring

3. 1996 R 812 000 R 250 000- 30 days 30 days+ Average

R 812 000 needs monitoring

4. 2004 R1 000 000 R1 50 000 60 days 60 days Good

c/l

TRADE REFERENCES – OCTOBER 2011

ACCOUNT HIGHEST AVERAGE TERMS PAYMENT EXPERIENCE

OPENED CREDIT CREDIT PATTERN

1. 2004 declined R200 000 60 days 60 days Very good

2. 12 years declined R100 000 30 days 30 days Very good

3. Do not give trade reference

TRADE REFERENCES – FEBRUARY 2013

ACCOUNT HIGHEST AVERAGE TERMS PAYMENT EXPERIENCE

OPENED CREDIT CREDIT PATTERN

1. +10 years Declined ±R2 500 000 30 days 30 days Excellent

2. 2004 Declined R 200 000 60 days 60 days Very Good

3. Do not give trade references

4. 1996 R800 000 ±R300 000- 30 days 30 days Very Good

R400 000

CURRENT TRADE REFERENCES

ACCOUNT HIGHEST AVERAGE TERMS PAYMENT EXPERIENCE

OPENED CREDIT CREDIT PATTERN

1. 2004 Declined R  200 000 60 days 60 days Very Good

2. 10 years R7 000 000 R3 000 000 30 days 30 days Excellent

3. Do not give trade references

4. 10 years Declined R2 500 000 30 days 30 days Excellent

NATURE OF GOODS OR SERVICES SUPPLIED

(These descriptions relate respectively by number to the above current trade transactions):

1. Electrical Engineering

2. Chemicals

Chemicals

COMMENTS

This is an established and very well connected company, which forms part of a large group of companies. The lack of updated financial information should be borne in mind together with the reducing turnover and operation in recent years.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.60.38
UK Pound	1	Rs.101.63
Euro	1	Rs.83.57

INFORMATION DETAILS

Analysis Done by :	DIV
Report Prepared by :	NIS

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.