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MIRA INFORM REPORT

 

 

Report Date :

18.04.2011

 

IDENTIFICATION DETAILS

 

Name :

KMART AUSTRALIA LTD

 

 

Formerly Known As :

K MART LTD

 

 

Registered Office :

11th House 40/0 The Esplanade Perth, Western Australia 6000

 

 

Country :

Australia

 

 

Date of Incorporation :

10.07.1967

 

 

Legal Form :

Proprietary Limited Company

 

 

Line of Business :

Operates as a chain of discount department stores.

 

RATING & COMMENTS

 

MIRA’s Rating :

A

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Status :

Good

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 – December 31, 2010

 

Country Name

Previous Rating

(30.09.2010)

Current Rating

(31.12.2010)

Australia 

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

REGISTERED NAME      

 

KMART AUSTRALIA LTD

ACN: 004 700 485

ABN: 73 004 700 485

 

 

CORPORATE SEARCH

 

Incorporation Date:                    10 Jul 1967

 

Incorporation State:                   Victoria

 

Registered Office                      11TH HOUSE 40/0 THE ESPLANADE

                                                PERTH, Western Australia 6000 Australia

 

Number of Shares Issued:         19,240,000

 

Paid Capital:                             $340,000,000

 

Directors                                   MATHESON, David Graham

19 Hartley Rd

WONGA PARK, VIC 3115

 

PECK, Nicole Maree

18 Gurr St

EAST GEELONG, VIC 3219

 

BOWEN, Terence James

                                                11TH HOUSE 40/0 THE ESPLANADE

                                                PERTH, Western Australia 6000 Australia

                                               

RUSSO, Gaetano, Alfred

14 Myamin St

ARMADALE, VIC 3143

 

GOYDER, RICHARD JAMES

Appointment Date: 29 Jan 2008

Date of Birth: 18 Jan 1960

Gender: Male

                                                Address: 11TH HOUSE 40/0 THE ESPLANADE

                                                PERTH, Western Australia 6000 Australia

Resident Overseas: No

 

BAILEY, IAN

Appointment Date: 29 Jan 2008

Date of Birth: 18 Jun 1966

Gender: Male

Address: 75 DENDY Street BRIGHTON, Victoria 3186 Australia

Resident Overseas: No

 

Secretary                                  LINDA JAYNE KENYON AND OTHERS

                                                Appointment Date: 29 Jan 2008

 

 

BUSINESS STRUCTURE

 

TRADING ADDRESS                 690 Springvale Rd

                                                MULGRAVE, VIC 3170                          

 

TELEPHONE                             (03) 9829 4111

 

TRADING STYLES                    K MART

                                                KMART

                                                KMART TYRE & AUTO SERVICE

                                                K MART AUTO

 

BRANCHES                              The subject maintains 186 discount department stores and 251 Kmart Tyre and Auto Services outlets.            

 

HOLDING ENTITY                      COLES GROUP LIMITED

 

ULTIMATE HOLDING

ENTITY                                     WESFARMERS LTD

           

BANK                                       NATIONAL AUSTRALIA BANK

                                               

EMPLOYEES                            26,212 (Australian & New Zealand)

           

           

BACKGROUND

 

The subject was incorporated in Victoria on 10 July 1967 as K Mart Ltd, changing name on 10 July 1967 to K Mart P/L, changing name on 31 January 1968 to K Mart (Australia) Ltd, changing name on 3 December 1982 to Coles KMA Ltd, before adopting the current style on 8 April 1992.

 

The first Kmart store opened in Australia on 30 April 1969 as Australia’s first discount department store.

 

On 7 November 2007, the majority of Coles Group Limited shareholders voted in favour of Wesfarmers Limited acquiring Coles Group.

 

Coles Meyer Limited was listed on the Australian, London, New York and New Zealand Stock Exchanges and was Australia’s largest non-government employer with over 160,000 staff.

 

Coles Myer has origins, which date back to 1900 when Sidney and Elcon Myer opened a small store in Bendigo, Victoria.

 

Wesfarmers Limited has origins which date back to 1914 and was listed on the Australian Stock Exchange in 1984.

 

 

OPERATIONS

 

The subject operates as a chain of discount department stores.

 

Products include home entertainment systems, photographic supplies, toys and sporting goods, gardening, automotive, homewares, stationary, camping and fishing, health and beauty, menswear, womenswear, childrenswear, footware and books.

 

 

ADVERSE

                                               

A search of of 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.

 

The subject is noted to have entered into a Deed of Cross Guarantee pursuant to a Class Order with its Ultimate Holding entity Wesfarmers Limited. The effect of the Deed is that each party that forms part of the closed group guarantee the debts of each other. Pursuant to the Class Order, the subject is relieved from its requirements to lodge financial statements.

 

For the year ended 30 June 2010, the group recorded revenue of $51,827,000,000 which resulted in an operating profit before tax of $2,215,000,000 and an operating profit after tax of $1,565,000,000 representing a Net Profit Margin of 3.02%.

 

For the same period, the members of the closed group which form part of the Deed of Cross Guarantee recorded an operating profit before tax of $1,852,000,000 and after tax of $1,283,000,000.

 

For this period the operations of Kmart recorded revenue of $4,019 million which resulted in EBIT of $196 million.

 

Below is a summary of the groups consolidated income results for the past two financial years.

 

 

Wesfarmers Ltd - consolidated

 

 

As at 30 June 2010

As at 30 June 2009

Change (%)

Revenue

$51,827,000,000

$50,982,000,000

1.66%

Profit b/tax

$2,215,000,000

$1,996,000,000

10.97%

Profit a/tax

$1,565,000,000

$1,522,000,000

2.83%

Net Profit Margin

3.02%

2.99%

0.03%

 

During fiscal 2010 the group recorded Net Cashflows form operating activities totaling $3,327 million.

 

As at 30 June 2010 Wesfarmers Limited recorded total consolidated current assets of $9,674 million. They included inventories of $4,658 million and receivables of $2,086 million.

 

Current liabilities at the same date totalled $7,852 million and included payables of $4,603 million and interest bearing liabilities of $304,000.

 

As at 30 June 2010, Wesfarmers Limited recorded consolidated Working capital of $1,822 million and a current ratio of 1.23 to 1 indicating a sound liquidity position.

 

At this date, the members of the closed group which form part of the Deed of Cross Guarantee recorded a deficiency in Working Capital of $578 million and a current ratio of 0.93 to 1.

 

As at 30 June 2010, Wesfarmers Limited recorded consolidated Net Assets of $24,694 million and a Debt to equity ratio of 0.59 to 1.

 

At the same date, the members of the closed group which form part of the Deed of Cross Guarantee recorded Net Assets of $24,063 million. After deducting Intangibles of $20,158 million this results in a Net Worth of $3,905 million.

 

For the 6 months ended 31 December 2010 the group recorded revenue of $27,077 million which resulted in an operating profit before tax of $1,645 million and an operating profit after tax of $1,173 million.

 

For this period the Kmart operations contributed revenue of $2,271 million which resulted in EBIT of $175 million.

 

                                    Other Financial Information

 

 

Wesfarmers Ltd - consolidated

 

 

As at 30 June 2010

As at 30 June 2009

Change (%)

Revenue

$51,827,000,000

$50,982,000,000

1.66%

Profit b/tax

$2,215,000,000

$1,996,000,000

10.97%

Profit a/tax

$1,565,000,000

$1,522,000,000

2.83%

Net Profit Margin

3.02%

2.99%

0.03%

Current Assets

$9,674,000,000

$9,944,000,000

-2.72%

Non Current Assets

$29,562,000,000

$29,118,000,000

1.52%

Total Assets

$39,236,000,000

$39,062,000,000

0.45%

Current Liabilities

$7,852,000,000

$7,561,000,000

3.85%

Non Current Liabilities

$6,690,000,000

$7,253,000,000

-7.76%

Total Liabilities

$14,542,000,000

$14,814,000,000

-1.84%

Net Assets

$24,694,000,000

$24,248,000,000

1.84%

Working Capital

$1,822,000,000

$2,383,000,000

-23.54%

Current Ratio

1.23

1.32

-6.32%

Debt to Equity

0.59

0.61

-3.61%

 

 

 

 

TRADE SURVEY

 

During the current investigation, contact with the subject’s principals was unable to be established.

 

Subsequently details pertaining to the company’s suppliers were unable to be obtained and a trade survey could not be conducted.

 

 

SUMMARY

 

The subject was incorporated in Victoria on 10 July, before adopting the current style on 8 April 1992. Records disclose Share Capital of $340,000,000.

 

The first Kmart store opened in Australia on 30 April 1969 as Australia’s first discount department store.

 

The subject is noted to have entered into a Deed of Cross Guarantee pursuant to a Class Order with its Ultimate Holding entity Wesfarmers Limited.

 

For the year ended 30 June 2010, the group recorded revenue of $51,827,000,000 which resulted in an operating profit before tax of $2,215,000,000 and an operating profit after tax of $1,565,000,000 representing a Net Profit Margin of 3.02%.

 

For the same period, the members of the closed group which form part of the Deed of Cross Guarantee recorded an operating profit before tax of $1,852,000,000 and after tax of $1,283,000,000.

 

As at 30 June 2010, the members of the closed group which form part of the Deed of Cross Guarantee recorded a deficiency in Working Capital of $578 million and a current ratio of 0.93 to 1.

 

At the same date, the members of the closed group which form part of the Deed of Cross Guarantee recorded Net Assets of $24,063 million. After deducting Intangibles of $20,158 million this results in a Net Worth of $3,905 million.

 

For the 6 months ended 31 December 2010 the

Kmart operations contributed revenue of $2,271 million which resulted in EBIT of $175 million.

 

                                   

                                               


 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.44.52

UK Pound

1

Rs.72.72

Euro

1

Rs.64.41

 

 

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.