MIRA INFORM REPORT

Report Date :

11.10.2014

IDENTIFICATION DETAILS

Name :	PAPER AUSTRALIA PTY LTD

Registered Office :	307, Ferntree Gully Road, Mount Waverley, Victoria, 3149

Country :	Australia

Financials (as on) :	31.12.2013

Date of Incorporation :	07.09.1993

Com. Reg. No.:	061583533

Legal Form :	Australian Proprietary Company, Limited by Shares

Line of Business :	The Subject’s business consists of manufacturing, export and distribution of printing, publishing and packaging papers.

No of Employees :	1,344 employees (Subject); 13,107 employees (Nippon Paper Industries Group)

RATING & COMMENTS

MIRA’s Rating :

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 – June 1, 2014

Country Name

Previous Rating

(31.03.2014)

Current Rating

(01.06.2014)

Austria

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

AUSTRIA - ECONOMIC OVERVIEW

Austria, with its well-developed market economy, skilled labor force, and high standard of living, is closely tied to other EU economies, especially Germany's. Its economy features a large service sector, a sound industrial sector, and a small, but highly developed agricultural sector. Following several years of solid foreign demand for Austrian exports and record employment growth, the international financial crisis of 2008 and subsequent global economic downturn led to a sharp but brief recession. Austrian GDP contracted 3.8% in 2009 but saw positive growth of about 2% in 2010 and 2.7% in 2011. Growth fell to 0.6% in 2012. Unemployment did not rise as steeply in Austria as elsewhere in Europe, partly because the government subsidized reduced working hour schemes to allow companies to retain employees. The 2012 unemployment rate of 4.3% was the lowest within the EU. Stabilization measures, stimulus spending, and an income tax reform pushed the budget deficit to 4.5% in 2010 and 2.6% in 2011, from only about 0.9% in 2008. The international financial crisis of 2008 caused difficulties for Austria's largest banks whose extensive operations in central, eastern, and southeastern Europe faced large losses. The government provided bank support - including in some instances, nationalization - to support aggregate demand and stabilize the banking system. Austria's fiscal position compares favorably with other euro-zone countries, but it faces external risks, such as Austrian banks' continued exposure to Central and Eastern Europe as well as political and economic uncertainties caused by the European sovereign debt crisis. In 2011 the government attempted to pass a constitutional amendment limiting public debt to 60% of GDP by 2020, but it was unable to obtain sufficient support in parliament and instead passed the measure as a simple law. In March 2012, the Austrian parliament approved an austerity package consisting of a mix of expenditure cuts and new revenues that will bring public finances into balance by 2016. In 2012, the budget deficit rose to 3.1% of GDP.

Source : CIA

CORPORATE DETAILS

Verified Address

Subject name
PAPER AUSTRALIA PTY LTD
Business address
307 Ferntree Gully Road
Town
Mount Waverley
Province
Victoria
Zip / Postal code
3149
Country
Australia
Telephone
+61 3 85402300
Fax
+61 3 85402280
Website
www.australianpaper.com.au

Registered address
307 Ferntree Gully Road
Town
Mount Waverley
Province
Victoria
Zip / Postal code
3149
Country
Australia
Postal address
Private Bag 87
Town
Mt Waverley
Province
Victoria
Zip / Postal code
3149
Country
Australia

SUMMARY DETAILS

Report Summary

Date registered
07/09/1993
Legal form
Australian Proprietary Company, Limited by Shares
Key personnel
Kunihiko Kashima
Line of business
The Subject’s business consist of manufacturing, export and distribution of printing, publishing and packaging papers.
Staff employed
1,344 employees (Subject); 13,107 employees (Nippon Paper Industries Group)

Paid-up capital
AUD 662,280,000.00
Sales turnover / Revenue / Income
AUD 773,614,000.00 (Consolidated 12 months, 31/12/2013)
Net income / loss
AUD -26,528,000.00 (Consolidated 12 months, 31/12/2013)
Total assets
AUD 919,380,000.00 (Consolidated 12 months, 31/12/2013)
Share equity
AUD 587,397,000.00 (Consolidated 12 months, 31/12/2013)

Subject’s Credit Risk Analysis

Country risk
Country risk is minimal
Operation trend
Operational trend is declining
Management experience
Management is adequately experienced
Financial performance
Financial performance is gradually declining
Remarks
Larger credit can still be considered as the Subject's is well positioned in the market and the financial stability of the group is positive.

Organisation structure
Organisational structure is stable
Detrimental
No detrimental found
Payment history
No payment delays noted
Credit amount requested
Not described.

STATUTORY DETAILS

Registry Information

Date registered
07/09/1993
Legal form
Australian Proprietary Company, Limited by Shares
Registration number
Australian Company Number: 061583533
Registered authority
Australian Securities and Investments Commission
Tax / VAT number
Australian Business Number: 63061583533

Statutory status
Active
Previous name
PAPER MERCHANT HOLDINGS PTY LTD
DECURION PTY LTD (initial)
Change of legal form
None reported.
Other registration
The Subject owns the following business names:

- TOMASETTI PAPER HOUSE

- OLYMPIC STATIONERY

- ENVELOPES NOW

- TUDOR GROUP

- UNIVERSAL STATIONERY - THE AUSTRALIAN PLAYING CARD COMPANY - AUSTRALIAN OFFICE LEADINGBRANDS.COM.AU - AUSTRALIAN ENVELOPES - THE PAPER HOUSE

- CUSTOM CUT AUSTRALIA - PAPER SHAPERS AUSTRALIA

- PRECISION CONVERTING AUSTRALIA

- SOUTHERN CROSS CONVERTING

- AMCOR MERCHANTING & TRADING

- AMCOR ENVELOPES

- UNIVERSAL STATIONERY

- TPH TRADING

- PAPER HOUSE XPRESS

- TOMASETTI PAPER HOUSE

- THE PAPER HOUSE GROUP

- PAPER HOUSE XPRESS

- AMCOR MERCHANTING

- PAPERLINX MERCHANTING

- TPH TRADING

- ECENTRIXPLUS

- PAPERXDESIGN

BOARD OF MANAGEMENT

Key Personnel

Name
Kunihiko Kashima
Designation
Managing Director

BOARD OF DIRECTORS

Appointments

Name
Kunihiko Kashima
Title
Director
Appointment date
01/08/11
Address
Unit 202
576-578 St Kilda Road
Melbourne, VIC 3004
Australia
Biography
Born on 13-02-1960 in Tokyo, Japan.
Name
Toru Nozawa
Title
Director
Appointment date
22/07/14
Address
2-3-B7-904 Midori-cho
Musashino-shi
Tokyo
Japan
Biography
Born on 10-03-1959 in Kanagawa, Japan.
Name
Kenichi Numata
Title
Director
Appointment date
22/07/14
Address
2-22-10 Azusawa
Itabashi-ku
Tokyo
Japan
Biography
Born on 26-12-1961 in Kanagawa, Japan.
Name
Yauhito Obayashi
Title
Director
Appointment date
22/07/14
Address
3-1-17 Honkomagome
Bunkyo-ku
Tokyo
Japan
Biography
Born on 14-05-1960 in Aichi, Japan.
Name
Peter James Williams
Title
Company Secretary
Appointment date
01/06/09
Address
6 Turner Street
Malvern East, VIC 3145
Australia
Biography
Born on 27-04-1965 in Traralgon, Victoria, Australia.
Name
Felicity Anne Walsh
Title
Company Secretary
Appointment date
24/09/09
Address
1 Wattle Avenue
Balwyn North, VIC 3104
Australia
Biography
Born on 02-04-1966 in Melbourne, Victoria, Australia.

Staff employed
1,344 employees (Subject); 13,107 employees (Nippon Paper Industries Group)

Other Appointments

Auditor
ERNST & YOUNG
8 Exhibition Street
Melbourne, VIC 3000
Australia

SHARE CAPITAL

Composition

Authorized capital
AUD 662,280,000.00
Number / Type of shares
3,208,084,653 Ordinary Shares
Share par value
No Par Value

Issued capital
AUD 662,280,000.00

Paid-up capital
AUD 662,280,000.00

OWNERSHIP / SHAREHOLDERS

Composition

Shareholder name
NIPPON PAPER INDUSTRIES CO., LTD.
Address
1-2-2, Hitotsubashi
Chiyoda-ku
Tokyo 100-0003
Japan
Number / Type of shares
3,208,084,653 Ordinary Shares
Percentage (%) of shares
100%

CORPORATE AFFILIATIONS AND RELATED COMPANIES

Structure

Company name
NIPPON PAPER INDUSTRIES CO., LTD.
Affiliation type
Parent Company
Country of business
Japan
Comments
Nippon Paper Industries Co., Ltd. operates in paper-making and related businesses in Japan and internationally. The company operates in Pulp and Paper, Paper-Related, Wood Products and Construction Related, and Other segments. It provides paper products, including newsprint, printing and publication, business communication, and packaging papers, as well as industrial papers; paperboards comprising containerboards, white paperboards, chipboards, and base paper for building materials; household paper products, such as facial and bathroom tissues, paper towels, pre-moistened wipes, personal-care products, industrial-use wipes, and adult diapers; and specialty paper products consisting of filter, thin, and tobacco-related papers. The company also offers processed paper products that include liquid-packaging cartons for food, beverages, and household items; filling machines and maintenance services; paper bags; and adhesive papers. In addition, it provides a range of chemical products and functional film products, whcich comprise dissolving pulps, chlorinated and modified polyolefins, lignin-related products, carboxymetheyl and powdered cellulose products, ribonucleic acids, yeast, stevia extracts, and glycyrrhizine products, as well as drafting and copying media products. Further, the company offers wood and sawed logs, plywood, and lumber products; and collects and sells pulpwood, woodships, and waste paper products, as well as house components Additionally, it provides timber products for the building industry; and uniboards for the use in furniture manufacturing, as well as construction materials and civil engineering services. In addition, the company is engaged in beverage, and sports and leisure businesses. Further, it is involved in the provision of tree planting, and chip production and export services. The company is headquartered in Tokyo, Japan.

Company name
AUSTRALIA PAPER PTY LTD
Affiliation type
Wholly-owned Subsidiary
Country of business
Australia
Company name
PAPER PRODUCTS MARKETING (SINGAPORE) PTE LTE
Affiliation type
Wholly-owned Subsidiary
Country of business
Singapore
Company name
PAPER PRODUCTS MARKETING (USA) INC.
Affiliation type
Wholly-owned Subsidiary
Country of business
United States Of America
Company name
PAPER PRODUCTS MARKETING(HONG KONG) LTD
Affiliation type
Wholly-owned Subsidiary
Country of business
Hong Kong
Company name
PAPER PRODUCTS MARKETING PTY LTD
Affiliation type
Wholly-owned Subsidiary
Country of business
Australia
Company name
PAPER PRODUCTS MARKETING TAIWAN LTD
Affiliation type
Subsidiary
Country of business
Taiwan

Remarks on corporate affiliations and related companies
Other companies of the Nippon Paper group should be considered affiliates of the Subject.

BANK AND MORTGAGES

Bank Details

Name of bank
The Australia and New Zealand Banking Group Limited (ANZ Bank)
Address
Australia

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 Filings

Bankruptcy filings
None reported.
Court judgements
None reported.

Tax liens
None reported.
Others
None reported.

FINANCIAL STATISTICS

Description

Financial statement source
Commercial Registry Filings
Financial statement date
31/12/13
Style of financial statement
Full audited

Currency of financial statement
US Dollar (USD)
Exchange rate
1 USD = AUD 1.14 as of 07-10-2014

Concise Financial Data	Consolidation style	Consolidated	Consolidated	Group Consolidated
	Currency	Australia Dollar (AUD)	Australia Dollar (AUD)	Japan, Yen (JPY)
	Date of financial year end	31/12/13	31/12/12	31/03/14
	Length of financial accounts	12 months	12 months	12 months
	Sales turnover / Revenue / Income	773,614,000.00	782,965,000.00	1,081,277,000,000.00
	Profit / Loss before tax	-17,590,000.00	-9,385,000.00	30,498,000,000.00
	Net income / loss	-26,528,000.00	-20,334,000.00	22,770,000,000.00
	Non-current assets	572,538,000.00	550,491,000.00	975,477,000,000.00
	Property, plant and equipment	505,124,000.00	480,542,000.00	729,179,000,000.00
	Current assets	346,842,000.00	327,132,000.00	505,417,000,000.00
	Inventories	181,686,000.00	166,563,000.00	81,465,000,000.00
	Cash and cash equivalents	54,502,000.00	49,743,000.00	97,247,000,000.00
	Accounts receivable	109,154,000.00	109,326,000.00	201,713,000,000.00
	Total assets	919,380,000.00	877,623,000.00	1,480,894,000,000.00
	Current liabilities	274,679,000.00	188,338,000.00	509,234,000,000.00
	Non-current liabilities	57,304,000.00	83,327,000.00	545,075,000,000.00
	Accounts payable			130,997,000,000.00
	Total liabilities	331,983,000.00	271,665,000.00	1,054,309,000,000.00
	Share equity	587,397,000.00	605,958,000.00	426,585,000,000.00
	Retained earnings	-69,640,000.00	-48,268,000.00	77,994,000,000.00
	Reserves	-5,376,000.00	-8,160,000.00

Remarks

The consolidated financial statement above relates only to the Subject and its subsidiaries. The group consolidated financial statement above relates to the Subject's Parent Company Nippon Paper Industries Co., Ltd. and all its subsidiaries.

BUSINESS DETAILS

Operational Details

Main activities
The Subject engages in manufacturing, export and distribution of printing, publishing and packaging papers.

The Subject operates as a wholly owned subsidiary of Nippon Paper Industries Co., Ltd.

Nippon Paper Industries Co., Ltd. operates in paper-making and related businesses in Japan and internationally. The company operates in Pulp and Paper, Paper-Related, Wood Products and Construction Related, and Other segments. It provides paper products, including newsprint, printing and publication, business communication, and packaging papers, as well as industrial papers; paperboards comprising containerboards, white paperboards, chipboards, and base paper for building materials; household paper products, such as facial and bathroom tissues, paper towels, pre-moistened wipes, personal-care products, industrial-use wipes, and adult diapers; and specialty paper products consisting of filter, thin, and tobacco-related papers. The company also offers processed paper products that include liquid-packaging cartons for food, beverages, and household items; filling machines and maintenance services; paper bags; and adhesive papers. In addition, it provides a range of chemical products and functional film products, whcich comprise dissolving pulps, chlorinated and modified polyolefins, lignin-related products, carboxymetheyl and powdered cellulose products, ribonucleic acids, yeast, stevia extracts, and glycyrrhizine products, as well as drafting and copying media products. Further, the company offers wood and sawed logs, plywood, and lumber products; and collects and sells pulpwood, woodships, and waste paper products, as well as house components Additionally, it provides timber products for the building industry; and uniboards for the use in furniture manufacturing, as well as construction materials and civil engineering services. In addition, the company is engaged in beverage, and sports and leisure businesses. Further, it is involved in the provision of tree planting, and chip production and export services. The company is headquartered in Tokyo, Japan.
Products and services
Office paper
Printing and Publishing Papers
Envelopes
Exercise and binder books
Packaging Papers
Note and lecture pads
Adhesive mailing labels
Stationery products
Brands
REFLEX
OPTIX
TUDOR
OLYMPIC
TABLEX
POSTSPEED
QUEEN'S SLIPPER
BRILLIANT

Purchases

Local
The Subject sources its product(s) / material(s) locally.

International
The Subject sources its product(s) / material(s) from countries worldwide.

Sales

Local
The Subject sells its product(s) locally.

International
The Subject exports its product(s) to more than 70 countries worldwide.

Business Facilities and Assets

Premises
The Subject operates from the verified heading address consisting of a warehouse and an administrative office.
Intellectual property
AS/ISO 9001 Quality Management Certified
AS/ISO 14001 Environmental Management Certified

Branches
In addition, the Subject operates from a production facility located at Preston in Victoria and 2 mills located at Maryvale in Victoria and Shoalhaven in New South Wales.

SUMMARIZED COUNTRY RISK

Gross Domestic Products (GDP) and Economic Overview

Central bank
Reserve Bank of Australia
Reserve of foreign exchange and gold
US$ 46.714 billion
Gross domestic product (GDP)
US$ 1.586 trillion
Purchasing power parity (GPP)
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
2010: 2.8%
2011: 3.4%
2012: 2.7%
Unemployment rate
2010: 5.2%
2011: 5.1%
2012: 5.2%

Public debt (general Government gross debt as percentage (%) of GDP)
2010: 20.4%
2011: 22.9%
2012: 24%
Government bond ratings
Standard & Poor's: AAA
Moody's rating: Aaa
Moody's outlook: STA
Market value of publicly traded shares
US$1.198 trillion

Trade and Competitiveness Overview

Total exports
US$263.9 billion
Export commodities
Coal, iron ore, gold, meat, wool, alumina, wheat, machinery and transport equipment
Total imports
US$239.7 billion
Import commodities
Machinery and transport equipment, computers and office machines, telecommunication equipment and parts; crude oil and petroleum products
Best countries for doing business
10 out of 185 countries
Global competitiveness ranking
20 (ranking by country on a basis of 144, the first is the best)

Major export partners
China 27.4%, Japan 19.2%, South Korea 8.9%, India 5.8%
Major import partners
China 18.5%, US 11.4%, Japan 7.9%, Singapore 6.3%, Germany 4.7%
FDI inflows
2009: US$26,554 million
2010: US$35,556 million
2011: US$41,317 million
FDI outflows
2009: US$16,693 million
2010: US$12,791 million
2011: US$19,999 million

Country and Population Overview

Total population
22.68 million
Total area
7,692,024 km2
Capital
Canberra

Currency
Australian dollars (AUD)
Internet users as percentage (%) of total population
79%

PAYMENT OUTLOOK

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

KEY FINANCIAL RATIOS

For financial year end	31/12/13	31/12/12	.
Profitability	.	.	.
Pre-tax profit (loss) margin (%)	-2.27	-1.20
Net profit (loss) margin (%)	-3.43	-2.60
Return on Invested Capital	.	.	.
Return on assets (%)	-2.89	-2.32
Return on equity (%)	-4.52	-3.36
Liquidity	.	.	.
Current ratio	1.26	1.74
Quick ratio	0.60	0.85
Cash ratio	0.16	0.15
Accounts receivable turnover ratio (times)	7.09	7.16
Collection period (days)	51.50	50.97
Inventory turnover ratio (times)	4.26	4.70
Inventory conversion period (days)	85.72	77.65
Asset Management	.	.	.
Fixed asset turnover ratio (times)	1.53	1.63
Asset turnover ratio (times)	0.84	0.89
Capital Structure and Solvency	.	.	.
Total debt to asset ratio (%)	36.11	30.95
Total debt to equity ratio (%)	56.52	44.83
Non-current debt to equity ratio (%)	9.76	13.75

ATTACHMENT

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.61.16
UK Pound	1	Rs.98.62
Euro	1	Rs.77.67

INFORMATION DETAILS

Analysis Done by :	SUB

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%)

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.