MIRA INFORM REPORT

Report Date :

07.03.2014

IDENTIFICATION DETAILS

Name :	TEMBEC AVEBENE SAS
Registered Office :	221 route du Stade, BP 10, Tartas, 40400
Country :	France
Financials (as on) :	30.09.2012
Date of Incorporation :	15.10.1981
Com. Reg. No.:	323025320
Legal Form :	Public Subsidiary
Line of Business :	Transformation of waste sulphite liquor from its specialty pulp process into a complete line of lignosulfonates
No. of Employees :	26

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 – September 30, 2013

Country Name	Previous Rating (30.06.2013)	Current Rating (30.09.2013)
France	A1	A1

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

FRANCE - ECONOMIC OVERVIEW

The French economy is diversified across all sectors. The government has partially or fully privatized many large companies, including Air France, France Telecom, Renault, and Thales. However, the government maintains a strong presence in some sectors, particularly power, public transport, and defense industries. With at least 79 million foreign tourists per year, France is the most visited country in the world and maintains the third largest income in the world from tourism. France's leaders remain committed to a capitalism in which they maintain social equity by means of laws, tax policies, and social spending that mitigate economic inequality. France's real GDP contracted in 2009, and has recovered slowly since then. The unemployment rate increased from 7.4% in 2008 to 10.5% in 2013. Youth unemployment shot up to 24.2% during the third quarter of 2012 in metropolitan France. Lower-than-expected growth and high spending on social protection have strained France's public finances. The budget deficit rose sharply from 3.4% of GDP in 2008 to 7.5% of GDP in 2009 before improving to 4.0% of GDP in 2013, while France's public debt rose from 68% of GDP to nearly 94% over the same period. Under President SARKOZY, Paris implemented some austerity measures to begin bringing the budget deficit under the 3% euro-zone ceiling and to highlight France's commitment to fiscal discipline at a time of intense financial market scrutiny of euro-zone debt. Socialist Party candidate Francois HOLLANDE won the May 2012 presidential election, after advocating looser fiscal policy, greater state support for employment, the separation of banks' traditional deposit taking and lending activities from more speculative businesses, increasing the top corporate and personal tax rates, and hiring an additional 60,000 teachers during his five-year term. The government’s budget for 2014 introduced a temporary 75% tax on wages over one million euros, to be paid by employers. France ratified the EU fiscal stability treaty in October 2012. Despite stagnant growth and fiscal challenges, France's borrowing costs have declined in recent years because investors remain attracted to the liquidity of France’s bonds.

Source : CIA

Company name and address

TEMBEC AVEBENE SAS

221 route du Stade
BP 10
Tartas, 40400
France
Tel:	+33 05 58 56 47 56
Fax:	+33 05 58 73 45 54
www.tembec.com

Employees:	26
Company Type:	Public Subsidiary
Corporate Family:	44 Companies
Ultimate Parent:	Tembec Inc
Incorporation Date:	15-Oct-1981

Financials in:
Fiscal Year End:	30-Sep-2012
Reporting Currency:	Euro
Annual Sales:	17.3
Total Assets:	11.4

Business Description

Transformation of waste sulphite liquor from its specialty pulp process into a complete line of lignosulfonates

Industry

Industry	Basic Chemical Manufacturing
ANZSIC 2006:	1813 - Basic Inorganic Chemical Manufacturing
ISIC Rev 4:	2011 - Manufacture of basic chemicals
NACE Rev 2:	2013 - Manufacture of other inorganic basic chemicals
NAICS 2012:	325180 - Other Basic Inorganic Chemical Manufacturing
UK SIC 2007:	2013 - Manufacture of other inorganic basic chemicals
US SIC 1987:	2819 - Industrial Inorganic Chemicals, Not Elsewhere Classified

Key Executives

Name	Title
Christian Antoine Lucien Ribeyrolle	President
Christian Ribeyrolle	Président
Daniel Busin	Director
Richard Descloux	Director
Catherine Breemerch	Commercial director

Registered No.(FRA): 323025320

1 - Profit & Loss Item Exchange Rate: USD 1 = EUR 0.7705342

2 - Balance Sheet Item Exchange Rate: USD 1 = EUR 0.7719989

Corporate Overview

Location
221 route du Stade
BP 10
Tartas, 40400
France

Tel:	+33 05 58 56 47 56
Fax:	+33 05 58 73 45 54

www.tembec.com

Sales EUR(mil):	13.4
Assets EUR(mil):	8.8
Employees:	26
Fiscal Year End:	30-Sep-2012

Industry:	Chemical Manufacturing

Incorporation Date:	15-Oct-1981
Company Type:	Public Subsidiary
Quoted Status:	Not Quoted
Registered No.(FRA):	323025320

President:	Christian Antoine Lucien Ribeyrolle

Industry Codes

ANZSIC 2006 Codes:
1813	-	Basic Inorganic Chemical Manufacturing

ISIC Rev 4 Codes:
2011	-	Manufacture of basic chemicals

NACE Rev 2 Codes:
2013	-	Manufacture of other inorganic basic chemicals

NAICS 2012 Codes:
325180	-	Other Basic Inorganic Chemical Manufacturing

US SIC 1987:
2819	-	Industrial Inorganic Chemicals, Not Elsewhere Classified

UK SIC 2007:
2013	-	Manufacture of other inorganic basic chemicals

Business Description

Transformation of waste sulphite liquor from its specialty pulp process into a complete line of lignosulfonates

More Business Descriptions

Tembec Avebene Sa is primarily engaged in manufacture of other organic basic chemicals: acyclic hydrocarbons, saturated and unsaturated; cyclic hydrocarbons, saturated and unsaturated; acyclic and cyclic alcohols, including synthetic ethyl alcohol; mono- and polycarboxyclic acids including acetic acid; other oxygen-function compounds including aldehydes, ketones, quinones and dual or poly oxygen-function compounds; nitrogen-function organic compounds including amines; other organic compounds including wood distillation products, etc.; manufacture of charcoal; production of pitch and pitch coke; manufacture of synthetic aromatic products; and distillation of coal tar.

Financial Data

Financials in:	EUR(mil)
Revenue:	13.4
Assets:	8.8
Current Assets:	5.9
Total Liabilities:	8.8
Issued Capital:	0.8
Net Worth:	6.3
Date of Financial Data:	30-Sep-2012

1 Year Growth

19.6%

NA

Key Corporate Relationships

Bank: Societe Generale, Credit Lyonnais, Natixis Banque

Corporate Family

Total Corporate Family Members: 44

Company Name	Company Type	Location	Country	Industry	Sales (USD mil)	Employees
Tembec Inc	Parent	Montreal, QC	Canada	Paper Product Manufacturing	1,310.7	4,250
Asset/product line purchase proposed/announced.See corporate structure news on Tembec Inc for details
Tembec Inc. - Temiscaming Sulphite Pulp Mill	Facility	Temiscaming, QC	Canada	Paper Product Manufacturing		7,000
Tembec Inc. - Kapuskasing Mill	Facility	Kapuskasing, ON	Canada	Wood Product Manufacturing		900
Tembec Inc	Branch	Senneterre, QC	Canada	Wood Product Manufacturing	92.6	350
Tembec Tartas SASU	Subsidiary	Tartas	France	Paper Product Manufacturing	218.9	286
Tembec Avebene SAS	Subsidiary	Tartas	France	Basic Chemical Manufacturing	17.3	26
Tembec Inc. - Elko Sawmill	Facility	Elko, BC	Canada	Wood Product Manufacturing	60.2	250
Tembec Inc. - Cochrane Sawmill	Facility	Cochrane, ON	Canada	Wood Product Manufacturing	39.0	220
Tembec Inc	Branch	Chetwynd, BC	Canada	Paper Product Manufacturing	136.5	200
Tembec Inc. - Canal Flats Sawmill	Facility	Canal Flats, BC	Canada	Wood Product Manufacturing	4.5	200
Temboard Inc.	Subsidiary	Temiscaming, QC	Canada	Paper Product Manufacturing		180
Tembec Inc	Branch	Canal Flats, BC	Canada	Wood Product Manufacturing	76.2	170
Tembec Inc. - Temiscaming Corporate Office	Branch	Temiscaming, QC	Canada	Administrative Services	750.0	160
Tembec Inc	Branch	Chapleau, ON	Canada	Wood Product Manufacturing	50.7	155
Tembec Inc. - Hearst Mill	Facility	Hearst, ON	Canada	Paper Product Manufacturing	90.3	150
Tembec Inc	Branch	Bearn, QC	Canada	Wood Product Manufacturing	48.8	150
Tembec Inc. - La Sarre Sawmill	Facility	La Sarre, QC	Canada	Wood Product Manufacturing	47.4	150
Temlam, Inc.	Subsidiary	Ville Marie, QC	Canada	Wood Product Manufacturing		150
Tembec Inc. - Matane High-Yield Pulp Mill	Facility	Matane, QC	Canada	Paper Product Manufacturing	103.4	140
Tembec Inc. - Mattawa Mill	Facility	Mattawa, ON	Canada	Paper Product Manufacturing	48.9	100
Tembec Paper Group	Subsidiary	Temiscaming, QC	Canada	Paper Product Manufacturing		100
Tembec Paper Group	Branch	Etobicoke, ON	Canada	Paper Product Manufacturing	6.1	7
Tembec Inc. - Timmins	Facility	Timmins, ON	Canada	Forestry and Logging	14.7	75
Temcell	Subsidiary	Temiscaming, QC	Canada	Paper Product Manufacturing		50
Tembec Inc	Branch	Longueuil, QC	Canada	Synthetic Chemical Manufacturing	56.5	40
Tembec Inc. - Etobicoke Corporate Office	Branch	Etobicoke, ON	Canada	Administrative Services		30
Tembec Inc. - Huntsville Sawmill	Facility	Huntsville, ON	Canada	Wood Product Manufacturing	78.7	20
Tembec Inc	Branch	La Sarre, QC	Canada	Wood Product Manufacturing	8.0	18
Tembec Inc	Branch	Kirkland Lake, ON	Canada	Wood Product Manufacturing	6.0	18
Tembec Inc	Branch	Saint-Hubert, QC	Canada	Wood Product Manufacturing	5.9	18
Tembec Inc	Branch	Montreal, QC	Canada	Wood Product Manufacturing	5.9	18
Tembec Inc	Branch	Cranbrook, BC	Canada	Wood Product Manufacturing	5.9	18
Tembec Inc	Branch	Riviere-Trois-Pistoles, QC	Canada	Synthetic Chemical Manufacturing	16.9	12
Tembec Inc	Branch	Hearst, ON	Canada	Wood Product Manufacturing	3.3	10
Tembec Inc	Branch	Chapleau, ON	Canada	Wood Product Manufacturing	3.3	10
Tembec Inc	Branch	Swastika, ON	Canada	Construction and Hardware Materials Wholesale	9.0	8
Tembec Inc	Branch	Amos, QC	Canada	Construction and Hardware Materials Wholesale	7.8	7
Tembec France Sas	Subsidiary	Dax	France	Holding Companies		7
Fibre Excellence Tarascon SAS	Subsidiary	St Gaudens	France	Paper Product Manufacturing	156.9	374
Tembec Brassac	Subsidiary	Brassac	France	Wood Product Manufacturing	14.7	34
Tembec Inc	Branch	Etobicoke, ON	Canada	Storage and Warehousing	0.8	5
Tembec Inc	Branch	Oakville, ON	Canada	Wood Product Manufacturing	1.3	4
Tembec Industries Inc.	Subsidiary	Montreal, QC	Canada	Paper Product Manufacturing		3
Tembec Inc	Branch	Thomasburg, ON	Canada	Home and Garden Retail	0.3	1

Executives Report

Board of Directors

Name	Title	Function
Christian Ribeyrolle	Président	Chairman

Executives

Name	Title	Function
Christian Antoine Lucien Ribeyrolle	President	President
Christian Ribeyrolle	Président	President
Daniel Busin	Director	Senior Management (General)
Richard Descloux	Director	Senior Management (General)
Bernard Guillaume	Director	Senior Management (General)
Roseline Menard	Director	Senior Management (General)
Catherine Breemerch	Commercial director	Commercial Executive

Annual Profit & Loss

	30-Sep-2012	30-Sep-2011	30-Sep-2010
Period Length	12 Months	12 Months	12 Months
Filed Currency	EUR	EUR	EUR
Exchange Rate (Period Average)	0.770534	0.717768	0.740255
Consolidated	No	No	No
Total income	16.6	15.9	15.5
Net sales	17.3	15.6	14.9
Change in stock	-0.1	0.0	0.0
Unfinished work in progress	-0.7	0.3	0.5
Supplementary operating income	0.0	0.0	0.1
Other operating income	0.0	0.0	0.0
Other external charges	5.9	4.8	4.6
Cost of goods sold	5.9	6.1	6.0
Taxes and social security costs	0.2	0.2	0.2
Social charges	0.7	0.7	0.6
Total payroll costs	1.6	1.5	1.4
Cost of stock depreciation and amortisation	0.0	-	0.0
Fixed asset depreciation and amortisation	0.4	0.4	0.5
Other operating costs	0.2	0.2	0.2
Total operating costs	14.9	13.9	13.6
Net operating income	1.8	2.0	1.9
Total financial income	0.2	0.0	0.1
Interest payable on loans	0.0	0.0	0.0
Other expenses	0.0	0.0	0.0
Total expenses	0.0	0.0	0.0
Profit before tax	1.9	2.0	2.0
Extraordinary income	0.1	0.1	0.2
Extraordinary expenses	0.1	0.0	0.0
Extraordinary result	0.1	0.1	0.2
Total taxation	0.6	0.7	0.7
Net profit	1.3	1.4	1.5

Annual Balance Sheet

Financials in: USD (mil)

	30-Sep-2012	30-Sep-2011	30-Sep-2010
Filed Currency	EUR	EUR	EUR
Exchange Rate	0.771999	0.745323	0.732493
Consolidated	No	No	No
Issued capital	1.1	1.1	1.1
Legal reserves	1.3	1.5	1.6
Total reserves	0.1	0.1	0.1
Profits for the year	1.3	1.4	1.5
Profit brought forward from previous year(s)	4.3	3.1	1.6
Total stockholders equity	8.1	7.1	6.0
Provisions and allowances	0.0	0.0	0.0
Trade creditors	2.1	2.5	3.6
Bank loans and overdrafts	-	0.0	0.0
Current bank debts	-	0.0	0.0
Other loans	0.2	-	-
Other liabilities	0.1	1.7	2.2
Debts on fixed assets	0.2	0.2	0.1
Taxation and social security	0.8	0.8	0.7
Total current liabilities	3.3	5.2	6.6
Total debts	3.3	5.2	6.6
Regularisation account	0.0	-	0.0
Total liabilities (including net worth)	11.4	12.3	12.6
Land	0.0	0.0	0.0
Buildings	1.0	0.8	0.9
Other fixed assets	2.7	3.2	3.2
Other financial assets	0.0	0.0	0.0
Total non-current assets	3.8	4.1	4.2
Net stocks and work in progress	0.4	1.2	0.9
Trade debtors	2.1	2.5	3.6
Other receivables	0.2	1.6	2.3
Prepaid expenses	0.0	0.0	0.0
Cash and liquid assets	0.2	0.0	1.7
Marketable securities	4.7	3.0	-
Total current assets	7.6	8.3	8.5
Prepaid expenses and deferred costs	0.0	0.0	-
Total assets	11.4	12.3	12.6

Annual Ratios

Financials in: USD (mil)

	30-Sep-2012	30-Sep-2011	30-Sep-2010
Period Length	12 Months	12 Months	12 Months
Filed Currency	EUR	EUR	EUR
Exchange Rate	0.771999	0.745323	0.732493
Consolidated	No	No	No
Current ratio	2.30	1.60	1.30
Quick ratio	2.20	1.40	1.10
Total liabilities to net worth	0.40%	0.73%	1.11%
Net worth to total assets	0.71%	0.58%	0.47%
Collection period	36.80	51.20	71.70
Stock turnover rate	38.80	13.00	17.60
Asset turnover	1.51%	1.21%	1.19%
Profit margin	0.11%	0.13%	0.13%
Return on assets	0.16%	0.15%	0.16%
Shareholders' return	0.23%	0.27%	0.34%
Sales per employee	3,503.41	2,929.43	2,898.35
Profit per employee	378.37	371.49	385.82
Average wage per employee	315.75	282.82	280.27
Net worth	8.1	7.1	6.0
Number of employees	25	25	25

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.61.32
UK Pound	1	Rs.102.54
Euro	1	Rs.84.19

INFORMATION DETAILS

Report Prepared by :

NNA

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.