MIRA INFORM REPORT

Report Date :

09.03.2011

IDENTIFICATION DETAILS

Name :	RETAIL ADVENTURES PTY LTD

Registered Office :	'Building 0 The Binary Centre' Level 4, 3 Richardson Place, North Ryde Nsw 2113

Country :	Australia

Date of Incorporation :	17.03.2009

Legal Form :	Proprietary company

Line of Business :	chain of discount variety stores with 380 stores across Australia.

RATING & COMMENTS

MIRA’s Rating :

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Status :	Moderate

Payment Behaviour :	Unknown

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

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

REGISTERED NAME

RETAIL ADVENTURES PTY LTD

ACN: 135 890 845

ABN: 37 135 890 845

ADDRESS GIVEN

59 Kirby St

RYDALMERE, NSW 2116

CORPORATE SEARCH

Incorporation State: VIC

Incorporation Date: 17 MAR 2009

Registered Office

'BUILDING 0 THE BINARY CENTRE' LEVEL 4,

3 RICHARDSON PLACE,

NORTH RYDE

NSW 2113

Registered Charges: 2

Both Fixed & Floating

ANZ FIDUCIARY SERVICES PTY LTD (100709493)

2053902

Provisional - 29 SEP 2010

Both Fixed &Floating

ANZ FIDUCIARY SERVICES PTY LTD (100709493)

1774596

Registered 07 APR 2009

Current Directors Total: 3

PENNY JANE MOSS – Appointed: 03 DEC 2010

09 JUN 1973

Resident overseas

BRUCE ROBERTSON IRVINE – Appointed: 26 OCT 2009

15 DEC 1956

Resident overseas

JANET HEATHER CAMERON – Appointed: 17 MAR 2009

31/1 CASTRAY Esplanade

BATTERY POINT, TAS

19 NOV 1952

Current Secretaries Total: 1

PENNY JANE MOSS – Appointed: 03 DEC 2010

Share Structure - Classes Total: 1

ORD ORDINARY - 8000000 – Amount: $8,000,000

Shareholders Total: 1

ORD 8000000 - RETAIL ADVENTURES HOLDINGS PTY LTD

BUSINESS STRUCTURE

HEAD ROSE 3 Richardson Pl

NORTH RYDE, NSW 2113

TELEPHONE (612) 8898 7777

(612) 8898 7720 (Colin)

FACSIMLE (612) 8898 7591

TRADING STYLES GO LO DISCOUNT STORES

SAM’S WAREHOUSE

CHICKENFEED BARGAIN STORES

CRAZY CLARKS

BRANCHES The subject maintains 380 retail stores across Australia

BANK NATIONAL AUSTRALIA BANK

ANZ BANKING GROUP

EMPLOYEES 7,800

BACKGROUND

The subject was incorporated in New South Wales on 17 March 2009 under the current style.

The subject was formed to take over the assets and operations of Australian Discount Retail Group, a corporation that was experiencing financial difficulties and had been placed into receivership.

The effective date of the acquisition was 1 April 2009

OPERATIONS

The subject operates as a chain of discount variety stores with 380 stores across Australia.

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 Collin Fibson (02 8898 7720), he advised that the subject was formed to take over the assets and operations of Australian Discount Retail Group on 1 April 2009.

Mr Fibrins advised that for the 16 months ended 31 July 2010 the subject recorded a loss on revenue of $985 million.

The operating loss for the last financial year was attributable to coast associated with restructuring the business.

On a projected basis the subject is expecting a break even result on revenue of $700 million for the current financial year ending 31 July 2011.

Current assets include inventories of $120 million.

Fixed assets include plant and equipment valued at $20 million.

Current liabilities include creditors of $60,000,000, provisions of $20,000,000 and accruals of $20,000,000.

The subject is still in the process of preparing the 2010 financial statements. Further details in this regard were subsequently unable to be obtained for the current enquiry.

Enquiries in trade quarters revealed satisfaction from one supplier contacted in dealing with the subject on a credit basis.

TRADE SURVEY

A trade survey on the subject traced the following accounts:

1. (perfect Imports) Purchases range up to $500,000 per month on 45 and 60 day terms. Payment is met in to terms and the account is considered satisfactory, having been known since April 2009.

SUMMARY

The subject was incorporated in New South Wales on 17 March 2009 under the current style.

The subject was formed to take over the assets and operations of Australian Discount Retail Group, on 1 April 2009.

For the 16 months ended 31 July 2010 the subject recorded a loss on revenue of $985 million.

On a projected basis the subject is expecting a break even result on revenue of $700 million for the current financial year ending 31 July 2011.

Enquiries in trade quarters revealed satisfaction from one supplier contacted in dealing with the subject on a credit basis.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.45.03
UK Pound	1	Rs.72.98
Euro	1	Rs.62.94

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

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%)

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