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Report No. : |
324185 |
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Report Date : |
01.06.2015 |
IDENTIFICATION DETAILS
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Name : |
PAPER AUSTRALIA PTY LTD |
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|
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Registered Office : |
307 Ferntree Gully Rd Mount Waverley, Vic 3149 |
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Country : |
Australia |
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Financials (as on) : |
31.12.2014 (Consolidated) |
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Date of Incorporation : |
1939 |
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Legal Form : |
Private Company |
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Line of Business : |
Manufacture and distribution of paper and stationery products |
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No. of Employee : |
1308 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Satisfactory |
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Payment Behaviour : |
Slow but correct |
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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 – December 31, 2014
|
Country Name |
Previous Rating (30.09.2014) |
Current Rating (31.12.2014) |
|
Australia |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
|
Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
AUSTRALIA ECONOMIC OVERVIEW
The Australian economy has experienced continuous growth and features low unemployment, contained inflation, very low public debt, and a strong and stable financial system. By 2014, Australia had experienced more than 20 years of continued economic growth, averaging more than 3% a year. Demand for resources and energy from Asia and especially China has grown rapidly, creating a channel for resources investments and growth in commodity exports. The high Australian dollar has hurt the manufacturing sector, while the services sector is the largest part of the Australian economy, accounting for about 70% of GDP and 75% of jobs. Australia was comparatively unaffected by the global financial crisis as the banking system has remained strong and inflation is under control. Australia has benefited from a dramatic surge in its terms of trade in recent years, stemming from rising global commodity prices. Australia is a significant exporter of natural resources, energy, and food. Australia's abundant and diverse natural resources attract high levels of foreign investment and include extensive reserves of coal, iron, 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 is an open market with minimal restrictions on imports of goods and services. The process of opening up has increased productivity, stimulated growth, and made the economy more flexible and dynamic. Australia plays an active role in the World Trade Organization, APEC, the G20, and other trade forums. Australia has bilateral free trade agreements (FTAs) with Chile, Malaysia, New Zealand, Singapore, Thailand, and the US, has a regional FTA with ASEAN and New Zealand, is negotiating agreements with China, India, Indonesia, Japan, and the Republic of Korea, as well as with its Pacific neighbors and the Gulf Cooperation Council countries, and is also working on the Trans-Pacific Partnership Agreement with Brunei Darussalam, Canada, Chile, Malaysia, Mexico, New Zealand, Peru, Singapore, the US, and Vietnam.
|
Source
: CIA |
PAPER AUSTRALIA
PTY LTD
T/AS AUSTRALIA
PAPER
ACN: 061 583 533
ABN: 63 061 583
533
|
Established |
1939 |
|
|
Incorporated |
1993 |
|
|
Line of Business |
Manufacture and distribution of paper and stationery products |
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Status |
Trading |
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Adverse Listings |
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|
For the financial year ended 31 December 2014 the subject recorded
consolidated revenue of $784,659,000, which resulted in an operating Loss
before tax of $29,127,000 and an operating Loss after tax of $37,491,000.
On 24 February 2015 the subject announced the closure of the
manufacturing facilities at Shoalhaven NSW. The closure is expected to be
completed by the end of 2015.
As at 31 December 2014 the subject recorded consolidated Working Capital
of $69,083,000 and a current ratio of 1.27 to 1 indicating satisfactory
liquidity levels.
Consolidated Net Assets totalled $547,991,000 as at 31 December 2014.
After deducting intangibles of $698,000 this results in a Net Worth of
$547,293,000.
Despite the trading losses, in our opinion the subject has the asset
backing to undertake a credit facility with a $240,513 exposure. For added
security we would recommend seeking intercompany guarantees from the holding
entity.
Company Type Australian
Proprietary Company
INCORPORATED 7
September 1993
REGISTERED ADDRESS 307
Ferntree Gully Rd
MOUNT
WAVERLEY, VIC 3149
SHARECAPITAL $662,280,000
SHAREHOLDERS NIPPON
PAPER INDUSTRIES CO LTD
Holds
3,208,084,653 shares
DIRECTORS OBAYASHI, YAUHITO
Resident overseas
NUMATA, KENICHI
Resident overseas
NOZAWA,
TORU
Resident
overseas
KASHIMA, KUNIHIKO
202, 578 St Kilda Rd
MELBBOURNE, VIC 3004
SECRETARY FELICITY ANNE WALSH
PETER
JAMES WILLIAMS
Effective 30 January 2012 the Personal Property Securities Register
(PPSR) was introduced to give the
different Commonwealth, State and Territory laws and registers regarding
security interests in personal property under one national system.
As a result of PPS Reform a number of existing Commonwealth, State and
Territory personal property security registers will close. Interests registered
on existing security interest registers will be migrated to the national PPS
Register. Subsequently Registered Charges are no longer lodged with the
Australian Securities and Investments Commission (ASIC).
Please contact us should you require a search of the PPSR.
TRADING ADDRESS 307 Ferntree Gully Rd
MOUNT WAVERLEY,
VIC 3149
POSTAL ADDRESS Private
Bag
MT WAVERLEY, VIC
3149
TELEPHONE (613)
8540 2300
FACSIMILE (613) 8540 2280
WEBSITE www.australianpaper.com.au
TRADING NAMES AUSTRALIAN OFFICE
AUSTRALIAN PAPER
BRANCHES RAGLAN, ST
PRESTON, VIC
WORTH ST CHULLORA,
NSW
ALBANY ST
FYSHWICK, ACT
EAST ST BROMPTON
SA
COLLIER ST
BASSENDEAN, WA
COBALT ST CAROLE
PARK QLD
MILL MARYVALE VIC
SHOALHAVEN NSW
HOLDING ENTITY NIPPON PAPER
INDUSTRIES CO LTD –JAPAN
CONTROLLED ENTITIES AUSTRALIA PAPER P/L – AUSTRALIA
PAPER PRODUCTS MARKETING P/L - AUSTRALIA
PAPER PRODUCTS TAIWAN LTD - TAIWAN
PAPER PRODUCTS MARKETING HONG KONG LTD HONG
KONG
PAPER PRODUCTS MARKETING SINGAPORE PTE LTD –
SINGAPORE
PAPER PRODUCTS MARKETING USA INC- USA
JOSEF FROHLEN PAPIERGROSSHANDLUNG-WILLI REDDEMAN
IMPORT- EXPORT GMBH - GERMANY
BANK NATIONAL
AUSTRALIA BANK
Branch:
Melbourne, VIC
EMPLOYEES 1308
The subject was incorporated in Victoria on 7 September 1993 as Decurion
P/L, changing name on 14 October 1993 to Paper Merchant Holdings P/L, adopting
the current style on 23 June 1998.
In 2009 the subject was acquired by Nippon Paper Group for $700 million.
Operations were founded in Australia in 1939.
The Nippon Paper Group is a leading global pulp and paper manufacturing
group which is principally based in Japan and employs almost 15,000 people.
The subject operates in the manufacture of paper and office products
including a range of office stationery, envelopes papers and boards for the
publishing, packaging and general print sectors of the printing industry.
Brands include Reflex, Olympic, Tudor, Optix and Queen’s Slipper.
Activities are conducted from premises located at the above listed
trading address.
A search of of failed to trace any litigation listed against the subject
at that date.
From the subjects most recently lodged financial statements, it is noted
that for the financial year ended 31 December 2014 the subject recorded
consolidated revenue of $784,659,000, which resulted in an operating Loss
before tax of $29,127,000 and an operating Loss after tax of $37,491,000.
The trading results for the last financial year were attributable to a
high Australian dollar. The stronger dollar results in cheaper imports and puts
increased pricing pressure on locally produced product sales as well as
reducing translation returns on exports.
Below is a summary of the subject’s income results for the past two
financial years.
|
Paper
Australia Pty Ltd - consolidated |
|||
|
|
As at 31
December 2014 |
As at 31
December 2013 |
Change (%) |
|
Revenue |
$784,659,000.00 |
$745,261,000.00 |
5.29% |
|
Profit b/tax |
($29,127,000.00) |
($17,590,000.00) |
65.59% |
|
Profit a/tax |
($37,491,000.00) |
($26,528,000.00) |
41.33% |
|
Net Profit
Margin |
-4.78% |
-3.56% |
-1.22% |
During fiscal 2014, the subject recorded a deficiency in consolidated
Net Cashflows from operating activities totalling $6,796,000.
On 10 October 2012 the subject announced that it would be proceeding
with a $90 million investment program to construct a premium recycled waste
paper plant and associated infrastructure at the Maryvale Mill in Gippsland.
The plant is expected to be complete in 2014.
On 24 February 2015 the subject announced the closure of the
manufacturing facilities at Shoalhaven NSW. The closure is expected to be
completed by the end of 2015.
The subject also announced a restructure of the corporate operations
together with the amalgamation of the Australian Office, AP Print and AP
Packaging Sales, Marketing, Customer Service and Product Development functions
into one domestic sales team.
As at 31 December 2014 the subject recorded consolidated total current
assets of $329,179,000. They included cash of $41,026,000, receivables of
$101,252,000 and inventories of $183,519,000.
Current liabilities at the same date totalled $260,096,000 and included
payables of $122,019,000 and borrowings of $90,608,000.
As at 31 December 2014 the subject recorded consolidated Working Capital
of $69,083,000 and a current ratio of 1.27 to 1 indicating satisfactory
liquidity levels.
Consolidated Net Assets totalled $547,991,000 as at 31 December 2014. At
this date, the subject further recorded a Debt to Equity ratio of 0.69 to 1
showing low levels of gearing. After deducting intangibles of $698,000 this
results in a Net Worth of $547,293,000.
|
Paper
Australia Pty Ltd - consolidated |
|||
|
|
As at 31
December 2014 |
As at 31 December
2013 |
Change (%) |
|
Revenue |
$784,659,000.00 |
$745,261,000.00 |
5.29% |
|
Profit b/tax |
($29,127,000.00) |
($17,590,000.00) |
65.59% |
|
Profit a/tax |
($37,491,000.00) |
($26,528,000.00) |
41.33% |
|
Net Profit
Margin |
-4.78% |
-3.56% |
-1.22% |
|
Current Assets |
$329,179,000.00 |
$346,842,000.00 |
-5.09% |
|
Non Current
Assets |
$596,169,000.00 |
$572,538,000.00 |
4.13% |
|
Total Assets |
$925,348,000.00
|
$919,380,000.00
|
0.65% |
|
Current
Liabilities |
$260,096,000.00 |
$274,679,000.00 |
-5.31% |
|
Non Current
Liabilities |
$117,261,000.00 |
$57,304,000.00 |
104.63% |
|
Total
Liabilities |
$377,357,000.00
|
$331,983,000.00
|
13.67% |
|
Net Assets |
$547,991,000.00
|
$587,397,000.00
|
-6.71% |
|
Working Capital |
$69,083,000.00 |
$72,163,000.00 |
-4.27% |
|
Current Ratio |
1.27 |
1.26 |
0.23% |
|
Debt to Equity |
0.69 |
0.57 |
21.84% |
Trade payment in the past 4 months have traced the following data for
the subject.
Total Owing:
$4,062
Total Past Due:
$403
Average Late
Payment Days: 6
Within terms: $3,660
1 – 30 days past due: $403
31 – 60 days past due: $0
61 – 90 days past due: $0
91+ days: $0
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.63.76 |
|
|
1 |
Rs.97.80 |
|
Euro |
1 |
Rs.69.91 |
INFORMATION DETAILS
|
Analysis Done by
: |
DIV |
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Report Prepared
by : |
ANK |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.