A4, like the other A 'series' paper sizes are all related by area. A4 is half the area of A2 and so on.
As for 4mm not being an integer fraction of 1cm etc., while that would be and issue for scale drawing, it isn't for a number of other uses, including (for example) plotting graphs. Over the years, I've seen various 'odd' grid sizes (I was a maths teacher and used maths in my earlier engineering career).
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