MIRA
INFORM REPORT
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Report Date : |
13.11.2008 |
IDENTIFICATION
DETAILS
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Name : |
CREATIVE BRANDS PTY LTD |
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Formerly Known As : |
Creative brands (Australia) P/L |
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Registered Office : |
30 Bando Rd SPRINGVALE, VIC 3171 |
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Country : |
Australia |
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Financials (as on) : |
30.06.2007 |
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Date of Incorporation : |
04.11. 2004 |
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Legal Form : |
Propriety Limited |
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Line of Business : |
Import and Wholesale of Grocery Items, Pharmacy Products and Variety
Goods |
RATING &
COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average. |
Small |
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Status : |
Moderate |
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Payment Behaviour : |
Usually Correct |
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Litigation : |
Clear |
REGISTERED NAME
CREATIVE BRANDS PTY LTD
ACN: 111 665 439
ABN: 62 111 665 439
CORPORATE SEARCH
INCORPORATED 4
November 2004
REGISTERED ADDRESS 30
Bando Rd
SPRINGVALE,
VIC 3171
SHARECAPITAL $2,000,003
SHAREHOLDERS MASON,
Stephen Leslie Holds 1,250,001
RAWLO
INTERNATIONAL P/L Holds
1,250,000
MCCARTNEY,
William Holds 1
WILSON,
Bruce Trenouth Holds
1
DIRECTORS MCCARTNEY,
William
24
Eastcote Rd
EPPING,
NSW 2121
MASON,
Stephen Leslie
59 Sutherland Rd
ARMADALE,
VIC 3143
SECRETARY MASON,
Stephen Leslie
59
Sutherland Rd
ARMADALE,
VIC 3143
REGISTERED CHARGES Registered Charge Number : 1112141
Date :
14.12.2004
Status : Fixed
and floating
Creditor : ANZ
banking Group
BUSINESS STRUCTURE
TRADING ADDRESS 30
Bando Rd
SPRINGVALE,
VIC 3171
TELEPHONE (613) 9574 2100
FACSIMILE (613) 9574
2144
BANK ANZ
BANKING GROUP
EMPLOYEES 70
to 80 full time equivalents
BACKGROUND
The subject was
incorporated in Victoria on 4 November 2004 as Creative brands (Australia) P/L,
before adopting the current style on 2 December 2004.
The subject was formed to
take over the assets and operations of an existing company trading as Creative Brands,
in a management buyout.
DIRECTORS PROFILES
MCCARTNEY, William Director was born on 3 April 1943 and was appointed to the subjects board on 8 November 2004. He maintains an active role in the subjects operations.
MASON, Stephen Leslie Director was born on 17 February 1952 and was appointed to the subject’s board on 8 November 2004. He maintains an active role in the subjects operations.
OPERATIONS
The subject operates in the
import and wholesale of grocery items, pharmacy products and variety goods.
Activities are conducted from premises located at the above listed
trading address.
ADVERSE
A search of the of Credit Advantage Limited failed to trace any
litigation listed against the subject at that date.
FINANCES
The subject is not required to lodge financial statements with the
Australian Securities and Investments Commission.
During the current interview conducted with the subjects Financial
Controller David McDowell he advised that for the last financial year ended 30
June 2008 the subject recorded a loss on revenue of $35,000,000.
The loss for the last financial year was attributable primarily to a
write of stock valued at $1,000,000.
From the most recently lodged accounts, it is noted that for the
financial year ended 30 June 2007 the subject recorded revenue of $27,457,276,
which resulted in an operating loss before tax of $371,063 and an operating
loss after tax of $270,569.
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Creative Brands Pty Ltd |
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As at 30 June 2007 |
As at 30 June 2006 |
Change (%) |
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Revenue |
$27,457,276 |
$23,512,323 |
16.78% |
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Profit b/tax |
($371,063) |
$157,597 |
-335.45% |
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Profit a/tax |
($270,569) |
$85,214 |
-417.52% |
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Net Profit Margin |
-0.99% |
0.36% |
-1.35% |
On a projected basis the subject expects to record a break even result
for the current financial year ending 30 June 2009. The trading result forecast
is predominantly a result of the current downturn in global economic conditions
and a recent devaluation of the Australian dollar.
During fiscal 2007, the subject recorded a deficiency in Net Cashflows
from operating activities totalling $641,058.
As at 30 June 2007 the subject recorded total current assets of
$7,898,876. They included cash of $68,766, receivables of $2,310,054 and
inventories of $5,214,090.
Current liabilities at the same date totalled $9,245,717 and included
payables of $3,803,115 and Interest bearing liabilities of $5,188,767.
As at 30 June 2007 the subject recorded a deficiency in Working Capital
of $1,346,841 and a current ratio of 0.85 to 1 indicating some tightness in
liquidity levels.
The subject maintains access to financing facilities with a combined
limit of $10,570,000.
Net Assets totalled $1,988,413 as at 30 June 2007. At this date, the
subject further recorded a Debt to Equity ratio of 6.77 to 1.
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Creative Brands Pty Ltd |
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As at 30 June 2007 |
As at 30 June 2006 |
Change (%) |
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Revenue |
$27,457,276 |
$23,512,323 |
16.78% |
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Profit b/tax |
($371,063) |
$157,597 |
-335.45% |
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Profit a/tax |
($270,569) |
$85,214 |
-417.52% |
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Net Profit Margin |
-0.99% |
0.36% |
-1.35% |
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Current Assets |
$7,898,876 |
$7,009,873 |
12.68% |
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Non Current Assets |
$7,552,393 |
$6,918,418 |
9.16% |
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Total Assets |
$15,451,269 |
$13,928,291 |
10.93% |
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Current Liabilities |
$9,245,717 |
$9,656,136 |
-4.25% |
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Non Current Liabilities |
$4,217,139 |
$2,013,174 |
109.48% |
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Total Liabilities |
$13,462,856 |
$11,669,310 |
15.37% |
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Net Assets |
$1,988,413 |
$2,258,981 |
-11.98% |
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Working Capital |
($1,346,841) |
($2,646,263) |
-49.10% |
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Current Ratio |
0.85 |
0.73 |
17.68% |
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Debt to Equity |
6.77 |
5.17 |
31.07% |
TRADE SURVEY
A trade survey on the subject traced the following accounts:
1.
Purchases average $300,000 per month on 60 day terms. Payment is met in
60 days and the account is considered satisfactory, having been known since
1995.
2.
Nominated supplier declined to provide a reference owing to company
policy.
SUMMARY
The subject was
incorporated in Victoria on 4 November 2004 as Creative brands (Australia) P/L,
before adopting the current style on 2 December 2004.
The subject was formed to
take over the assets and operations of an existing company trading as Creative
Brands, in a management buyout.
For the last financial year ended 30 June 2008 the subject recorded a
loss on revenue of $35,000,000.
For the financial year ended 30 June 2007 the subject recorded revenue
of $27,457,276, which resulted in an operating loss before tax of $371,063 and
an operating loss after tax of $270,569.
During fiscal 2007, the subject recorded a deficiency in Net Cashflows
from operating activities totalling $641,058.
As at 30 June 2007 the subject recorded a deficiency in Working Capital
of $1,346,841 and a current ratio of 0.85 to 1 indicating some tightness in
liquidity levels.
Net Assets totalled $1,988,413 as at 30 June 2007.
FOREIGN EXCHANGE
RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.49.46 |
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UK Pound |
1 |
Rs.73.17 |
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Euro |
1 |
Rs.62.96 |
RATING
EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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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 |
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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 |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit consideration.
Capability to overcome financial difficulties seems comparatively below
average. |
Small |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
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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%)