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Report Date : |
23.07.2013 |
IDENTIFICATION DETAILS
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Name : |
KMART AUSTRALIA LIMITED |
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Formerly Known As : |
K MART AUSTRALIA LTD |
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Registered Office : |
C/O Wesfarmers Limited, Level 11, Wesfarmers House, 40 The Esplanade, Perth, Western Australia, Zip/Postal Code 6000 |
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Country : |
Australia |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
10.07.1967 |
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Com. Reg. No.: |
004700485 |
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Legal Form : |
Unlisted Australian Public Company |
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Line of Business : |
Subject owns and operates a network of discount department stores in Australia and New Zealand under the name KMART and KMART TYRE & AUTO SERVICE |
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No. of Employees : |
25,500 employees (Subject); 201,413
employees (Wesfarmers Group) |
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 : |
Good |
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Payment Behaviour : |
No Complaints |
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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 – March 31st 2013
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
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Australia |
A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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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 2012, Australia had experienced more than 20 years of continued
economic growth, averaging 3.5% 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 |
Verified Address
Subject name : KMART AUSTRALIA LIMITED
Other style / Business name : KMART / KMART TYRE & AUTO SERVICE
Business address : Level 3, 690 Springvale Road
Town : Mulgrave
Province : Victoria
Zip/postal code : 3170
Country : Australia
Tel : +61 3 99022000
Fax : +61 3 99022334
Website : www.kmart.com.au
Registered address : C/o WESFARMERS LIMITED
Level
11, Wesfarmers House
40 The
Esplanade
Town : Perth
Province : Western Australia
Zip/postal code : 6000
Country : Australia
Executive Summary
Date founded or registered : 10/07/1967
Legal form : Unlisted Australian Public Company
Chief executive : Gaetano Alfred Gerrard
Russo
Issued & paid up capital : AUD 340,000,000
Sales turnover : AUD 58,080,000,000
(Group-Consolidated 12 months, 30/06/2012)
Net income : AUD 2,126,000,000 (Group-Consolidated 12
months, 30/06/2012)
Total fixed assets : AUD 42,312,000,000
(Group-consolidated 12 months, 30/06/2012)
Line of business : Owns and operates a
network of discount department stores in Australia and
New Zealand under the name KMART and KMART TYRE & AUTO
SERVICE.
Staff employed : 25,500 employees
(Subject); 201,413 employees (Wesfarmers Group)
Company Analysis
Country risk : Country risk is
minimal
Operation trend : Operational trend is
progressing
Management experience : Management is adequately experienced
Financial performance : Financial performance is very good
Organization structure : Organizational structure is
consistent
Detrimental : No detrimental found
Payment history : No payment delays noted
Comments : Larger credit can still be considered.
The Subject is well positioned in the market
and the financial stability of the group is positive.
Registry Data
Registration date : 10/07/1967
Legal form : Unlisted Australian Public Company
Registration no Australian Company
Number: 004700485
Registered authority : Australian Securities and
Investments Commission
Fiscal/ Tax no : Australian
Business Number: 73004700485
Registry status : Live/Active
Previous name : K MART AUSTRALIA LTD
COLES
KMA LIMITED
K MART
(AUSTRALIA) LIMITED
K MART
LIMITED
K MART
PTY. LIMITED (initial)
Change of legal form : None reported.
Key Management
Name : Gaetano Alfred Gerrard Russo
Designation : Chief Executive Officer
Name : Ian Bailey
Designation : Chief Operating Officer
Name : David Graham Matheson
Designation : Chief Operating Officer - Store and Supply Chain Operations
Appointments
Name : Ian Bailey
Designation : Director
Appointment date : 29/01/08
Address : 75 Dendy Street
Brighton,
VIC 3186
Australia
Biography : Born on 18-06-1966 in London, United
Kingdom.
Name : Richard James Barr Goyder
Designation : Director
Appointment date : 29/01/08
Address : C/o WESFARMERS LIMITED
Level
11, Wesfarmers House
40 The
Esplanade
Perth,
WA 6000
Australia
Biography : Born on 18-01-1960 in Tambellup, Western
Australia, Australia.
Mr.
Richard Goyder serves as Chief Executive Officer, Group
Managing
Director, Executive Director of Wesfarmers Limited. He
holds a
Bachelor of Commerce degree from the University of Western
Australia
and has completed the Advanced Management Program at
the
Harvard Business School. He held a number of positions with
Tubemakers
of Australia, particularly business development roles,
before
joining Wesfarmers in 1993. He is a director of Gresham
Partners
Holdings and a number of Wesfarmers group subsidiaries
and
related companies.
Name : Terence James Bowen
Designation : Director
Appointment date : 01/05/09
Address : C/o WESFARMERS LIMITED
Level
11, Wesfarmers House
40 The
Esplanade
Perth,
WA 6000
Australia
Biography : Born on 24-12-1966 in London, United Kingdom.
Mr.
Terry J. Bowen is the Finance Director, Executive Director of
Wesfarmers
Limited. He appointed in 2009 as an executive director
(non-independent).
He holds a Bachelor of Accountancy degree and
is a
Fellow of CPA Australia. He has held a number of finance
positions
with Tubemakers of Australia Ltd, culminating in his
appointment
as General Manager Finance. He joined Wesfarmers in
1996
and undertook various roles with Wesfarmers Landmark, where
he was
appointed Chief Financial Officer, until its acquisition by AWB
Limited
in 2003. He was then appointed the inaugural Chief Financial
Officer
for Jetstar Airways, prior to rejoining Wesfarmers as Managing
Director,
Wesfarmers Industrial and Safety in November 2005. He
became
Finance Director, Coles in 2007, and was appointed Finance
Director,
Wesfarmers in May 2009. He is also a director of Gresham
Partners
Holdings Ltd, the Western Australian Opera Company
Incorporated,
the Western Australian Institute for Medical Research
Incorporatedand
a number of Wesfarmers Group subsidiaries. He is a
member
of both the National Executive of the Group of 100 Inc and
Curtin
University School of Accountancy Advisory Board.
Name : Gaetano Alfred Gerrard Russo
Designation : Director
Appointment date : 10/11/08
Address : 3 Rose Craddock Place
Caulfield
North, VIC 3161
Australia
Biography : Born on 13-07-1959 in Sydney, New South Wales,
Australia.
Mr. Guy
Russo serves as Managing Director - Kmart of Wesfarmers
Limited.
He was Managing Director and Chief Executive Officer of
McDonald's
Australia between 1999 and 2005, and President of
McDonald's
Greater China region between 2005 and 2007. He
started
at McDonalds in 1974, working his way through the ranks
while
completing management development training at McDonald's
in-house
university as well as at Macquarie University Graduate
School
of Management in Sydney. He held all key operations
positions
within the Australian business including Regional Manager
of the
market, NSW/ACT, from 1991; in 1995 he became a Vice
President
of McDonald's Australia and in 1997 was appointed
advisory
director to the Australian Board. During this time he also
served
on numerous international task forces within the global
corporation.
After leaving McDonalds in 2007, he ran his own
consulting
firm advising public and private ventures with commercial
interests
in China, as well as other markets.
Name David
Graham Matheson
Designation : Director
Appointment date : 25/03/11
Address : 19 Hartley Road
Wonga
Park, VIC 3115
Australia
Biography : Born on 20-06-1964 in Cape Town, South Africa.
Name : Colin Brian Pavlovich
Designation : Director
Appointment date : 29/04/13
Address : 11C Parker Street
East
Fremantle, WA 6158
Australia
Biography : Born on 25-12-1970 in Perth, Western Australia,
Australia.
Name : Marnie Kronja
Designation : Company Secretary
Appointment date : 04/02/11
Address : 72 Carr Street
West
Perth, WA 6005
Australia
Biography : Born on 07-01-1975 in Subiaco, Western Australia,
Australia.
Staff employed : 25,500 employees (Subject); 201,413
employees (Wesfarmers Group)
Key Advisors
Auditors : ERNST & YOUNG
Ernst
& Young Building
11
Mounts Bay Road
Perth,
WA 6000
Australia
Composition
Authorized Capital : AUD 340,000,000
No of shares : 8,160,000 Ordinary A Shares /
7,840,000 Ordinary B Shares / 3,240,000
Redeemable Preference Shares
Share par value : AUD 1 for Ordinary A & Ordinary B
Share / AUD 100 for Redeemable Preference Share
Issued capital : AUD 340,000,000
Paid up capital : AUD 340,000,000
How listed : Full List
Composition
Shareholder name : WESFARMERS LIMITED
Address : Level 11, Wesfarmers House
40 The
Esplanade
Perth,
WA 6000
Australia
No. of shares : 8,160,000 Ordinary A Shares /
7,840,000 Ordinary B Shares / 3,240,000 Redeemable
Preference Shares
% of shares : 100%
Structure
Name : WESFARMERS LIMITED
Affiliation type : Parent Company
Address : Level 11, Wesfarmers House
40 The
Esplanade
Perth,
WA 6000
Australia
Comments : Wesfarmers Limited engages in the retail; coal
mining and production; gas
processing
and distribution; insurance; industrial and safety product distribution;
chemicals
and fertilizers manufacture; and investment businesses in Australia,
New
Zealand, and internationally. The company operates approximately 749
supermarkets,
including BI-LO branded stores; 792 liquor stores trading under the
Liquorland,
Vintage Cellars, and 1st Choice Liquor Superstores brands; 92 hotels;
627
fuel and convenience store outlets under the Coles Express name; and an
online
supermarket. It also retails home improvement and outdoor living products,
building
materials, and office and technology products; apparel, home wares, and
general
merchandise through 291 Target and Target Country stores; and apparel
and
general merchandise through 186 Kmart stores. In addition, the company is
involved
in property business; servicing project builders and the housing industry;
automotive
service, repair, and tire businesses through 251 Kmart Tyre and Auto
Service
stores; and supplying and distributing maintenance, repair, and operating
products,
as well as industrial safety products and services. Further, it provides
rural
and small business regional insurance; general insurance through broking
intermediaries;
insurance broking services; and risk management solutions to
corporates,
small-to-medium sized businesses, not-for-profit organizations, and
individuals.
Additionally, the company offers chemicals for industry, mining, and
mineral
processing activities; broadacre and horticultural fertilizers; LPG and
LNG;
industrial, medical, and specialty gases; and industrial equipment. It holds
interest
in the Curragh and Bengalla cola mines in Australia. The company also
provides
investment banking advisory and structured finance services; manages
investment
funds in private equity and property; and operates a softwood sawmill.
Wesfarmers
Limited was founded in 1914 and is headquartered in Perth,
Australia.
Name : COLES GROUP LIMITED
Affiliation type : Sister Company
Address : 800 Toorak Road
Hawthorn
East, VIC 3123
Australia
Name : BUNNINGS GROUP LIMITED
Affiliation type : Sister Company
Address : 16-18 Cato Street
Hawthorn
East, VIC 3123
Australia
Name : TARGET AUSTRALIA PTY LTD
Affiliation type : Sister Company
Address : 12-14 Thompson Road
North
Geelong, VIC 3215
Australia
Name : WESFARMERS RESOURCES LIMITED
Affiliation type : Sister Company
Address : Level 31, Central Plaza One
345
Queen Street
Brisbane,
QLD 4000
Australia
Name : CURRAGH QUEENSLAND MINING PTY LTD
Affiliation type : Sister Company
Address : Private Mail Bag
Blackwater,
QLD 4717
Australia
Name : WESFARMERS CURRAGH PTY LTD
Affiliation type : Sister Company
Address : GPO Box 51
Brisbane, QLD 4000
Australia
Name : OAMPS
(UK) LIMITED
Affiliation type : Sister Company
Address : Windsor
House
High Street, Esher
Surrey KT10 9RY
United
Kingdom
Name : BENGALLA
MINING COMPANY PTY LIMITED
Affiliation type : Sister Company
Address : Bengalla
Road
Muswellbrook, NSW
2333
New South Wales
Australia
Name : LUMLEY
GENERAL INSURANCE (NZ) LIMITED
Affiliation type : Sister Company
Address : Level
21, Lumley Centre
88 Shortland Street
Auckland Central,
Auckland 1010
New Zealand
Related
companies and corporate affiliations comments
Other companies of the Wesfarmers Limited should be
considered affiliates of the Subject.
Bank Details
Name of bank : Australia And New Zealand Banking
Group Limited
Address : Australia
Account details : Current Account
Name of bank : National Australia Bank Limited
Address : Australia
Account details : Current Account
Comments : It is generally not the policy of local banks to
provide credit status information to
non
related parties, however interested parties would be advised to consult first
with
the Subject if banker's references are required.
Mortgages : None reported.
Legal Fillings
Bankruptcy fillings : None reported.
Court judgements : None reported.
Tax liens : None reported.
Others : None reported.
Description
Source of financial statement : Public Record Sources
Financial statement date : 30/06/12
Type of accounts : Full audited
Currency : Australia Dollar (AUD)
Exchange rate : 1 USD = AUD 1.09 as of
22-07-2013
Summarized
Financial Information
Consolidation type : Group Consolidated Group Consolidated Group Consolidated
Currency : Australia Dollar (AUD) Australia Dollar (AUD) Australia Dollar (AUD)
Denomination : (x1) One (x1) One (x1) One
Date of financial year end : 31/12/12 30/06/12 30/06/11
Length of accounts : 6 months 12 months 12 months
Sale turnover / Income : 30,614,000,000 58,080,000,000 54,875,000,000
Profit before tax : 1,814,000,000 3,044,000,000 2,706,000,000
Net income : 1,285,000,000 2,126,000,000 1,922,000,000
Non current assets : 31,958,000,000 31,401,000,000 30,596,000,000
Current assets : 11,201,000,000 10,911,000,000 10,218,000,000
Inventories : 5,517,000,000 5,006,000,000 4,987,000,000
Total assets : 43,159,000,000 42,312,000,000 40,814,000,000
Current liabilities : 10,535,000,000 10,747,000,000
8,722,000,000
Non current liabilities : 6,750,000,000 5,938,000,000 6,763,000,000
Total liabilities : 17,285,000,000
16,685,000,000 15,485,000,000
Share equity : 25,874,000,000 25,627,000,000 25,329,000,000
Reserve : 325,000,000 269,000,000 310,000,000
Retained earning : 2,289,000,000 2,103,000,000 1,774,000,000
Comments : The group’s consolidated financial information above
relates to the Subject’s
Parent
/ Ultimate Holding Company Wesfarmers Limited and all its subsidiaries
which
include the Subject.
The
Kmart division reported sales turnover of AUD 4,055 million with EBIT of
AUD 266
million for financial year end 30-06-2012 compared to sales turnover of
AUD
4,036 million and EBIT of AUD 201 million for financial year end 30-06-2011.
Main activities : The Subject owns and
operates a network of discount department stores in
Australia
and New Zealand under the name KMART and KMART TYRE &
AUTO
SERVICE.
KMART
is engaged in the retail sales of apparel and general merchandise,
including
toys, leisure, entertainment, home and consumables.
KMART
TYRE & AUTO SERVICE is engaged in the provision of
automotive
service, repairs and tyre service.
The
Subject is part of Wesfarmers Limited, which is an Australia based
company.
The Company’s principal activities are retailing operations,
including
supermarkets, general merchandise and specialty department
stores;
fuel, liquor and convenience outlets; retailing of home improvement
and
outdoor living products and supply of building materials; retailing of
office
and technology products; coal mining and production; gas processing
and distribution;
insurance; industrial and safety product distribution;
chemicals
and fertilizers manufacture, and investments. It operates in 10
segments:
coles; home improvement and office supplies; resources;
insurance;
KMART; Target; industrial and safety; energy; chemicals and
fertilizers,
and other.
Product & services :
· Apparels
General merchandise
Electronics products
Toys
DVDs
Appliances
Bathroom & Laundry
products
Bedding & Accessories
Dining products
Home Decor
Indoor Furniture
Kitchen products
Office products: Inks and
office supplies
Storage Solutions
Automotive products: Car
Batteries, Car Cleaning, Car Interior Accessories, Oils & Coolants , Seat
Covers & Car Mats, Spare Parts & Accessories ,
Sunshades
Automotive repair and
services
Brand :
· KMART
KMART TYRE & AUTO
SERVICE
Purchases
International : Worldwide
Sales
Local : Yes
International : No exports.
Key events : 3 July 2013
WHY KMART AUSTRALIA WILL CONTINUE TO
SUPPORT
BANGLADESHI SUPPLIERS
Open letter by Guy Russo, Managing Director, Kmart Australia 3
July 2013 - Following the tragic Bangladeshi factory collapse, governments,
regulators and the media have rightly zeroed in on what responsibility major
retailers that source goods from these places have in improving safety and,
more broadly, helping to lift these communities out of poverty.
As a company that sources goods from Bangladesh, Kmart Australia
welcomes this discussion. However, it is important that the Australian
community – many who are our customers – know the facts about how we operate in
developing countries, and why abandoning workers and their factories, for
Kmart, is not an option
.
Kmart Australia has sourced manufactured goods from Bangladesh for
many years through agents and we established our own team, who deal direct with
factories there, in 2012. Our business supports the operations of over 30
Bangladeshi garment makers who employ thousands of people. There are risks
working in countries where industry standards, management skills and training,
and rules and regulations are significantly less than what we are accustomed to
here at home.
To address this Kmart, and other responsible companies, have long
had in place strict ethical sourcing codes of conduct to uphold standards and
protect the workers who make the products we sell. On behalf of Kmart
Australia, we don’t always get this right but I can wholeheartedly say that we
rectify any issue urgently, and we adjust our operations and way of thinking
immediately where required.
Only factories that meet our safety and social compliance
standards are awarded Kmart business. Regular formal and informal audits are
conducted by international audit businesses, and we have zero tolerance of
bribery, child and forced labour, physical and sexual abuse, as well as
inadequate safety standards, unsafe buildings and unauthorized subcontracting.
These zero tolerances also cover sweatshop working and slave labour.
In January and May this year, Kmart audited all of our supplier
factories in Bangladesh. Auditors revealed some factories in high-risk
environments that are therefore no longer eligible for Kmart business.
Factories with lower risk infractions were put on notice and given the chance
to make improvements.
Kmart takes compliance very seriously. Noncompliance has seen us cease
doing business with many factories in the last 12 months that have breached our
zero tolerance laws. Fortunately, we have our own office and a dedicated team
in Bangladesh, supported by a close team in Delhi, China and Australia who deal
directly with suppliers, share knowledge and are investing in building long
term strong and sustainable relationships.
Given the searing images from April’s
factory collapse, it is understandable that media and groups are critical of
big brands doing business in developing countries because of the poor standards
that lead to such tragedies.
However, there are many positive
strides that haven’t received much focus.
I was inspired during one of my
recent visits to see safety measures you’d find here at home: dedicated safety
officers wearing bright yellow jackets, floor staff supporting workers in
raising safety matters, identifiable and
unobstructed exits, readily available
fire equipment, regular safety meetings to air ideas and complaints, and
factory owners placing their desks in the middle of the floor to give
confidence to their workers about the structural integrity of their workplace.
This is all clear evidence that the
factories we support in Bangladesh are making changes to improve safety and
reduce risks for their workers. These are the benchmarks we expect, demand and
want to see in all factories we do business with and in my view the only way
their businesses can grow for the benefit of everyone.
It also helped me conclude that continuing to support responsible
factories with our business is the right thing to do. Abandoning them would be
disastrous for the manufacturers we have invested in and the thousands they
employ, predominantly women with families to support.
Every stakeholder we talk to in Bangladesh has urged us not to
withdraw and governments are doing their part to support improvements. The
Bangladeshi government is working with industry bodies, employers, labour rganizations and international standards bodies
to establish a proper workplace standards and compliance framework. The
Australian government has also given financial support for economic governance,
health and education.
For our part, as well as stepping up an already vigorous auditing
regime, Kmart has signed and strengthened the International Accord on Fire and
Building Safety in Bangladesh. Along with Target, Kmart was the first
Australian retailer to sign the Accord.
Wages are intrinsic to the ongoing discussion about working
conditions and living standards. Our customers rightly want assurance that the
low prices they pay for Kmart products aren’t at the expense of illegal wages
paid to garment workers in developing countries. I would like to assure them
that they aren’t.
Kmart’s strict requirement for supplier factories is that they
must pay at least the minimum rate to all workers or we will not do business
with them. Many of our supplier factories already pay well above the minimum
rate, and Kmart strongly supports proposed changes to Bangladeshi regulations
that would see the minimum wage for garment workers rise from 60% to 100%.
Wage and living standard disparities between Australia and
developing countries raise legitimate questions about whether we should be
paying more for goods to support higher wages overseas.
Creating employment and lifting people out of poverty through
sustained economic development is vital, and something myself and Kmart
Australia unashamedly supports. The last thing Bangladeshi garment workers need
is for Australian consumers to give in to demands for bans and
product boycotts, especially when available evidence shows Bangladeshi
factories, for the most part, are committed to making improvements.
There is nothing wrong with Kmart, and other responsible
retailers, sourcing low-cost products from Bangladesh, adding a margin to cover
costs, and passing on the benefits to consumers in the form of lower prices,
provided responsible steps are taken to ensure workplace safety and
remuneration standards are maintained.
Six hundred million people in China over
the past three decades have been lifted out of poverty through a similar
approach.
Through our sustained and responsible
support, Kmart will be striving for a similar result in Bangladesh and other
developing countries we operate in and will operate in going forward.
We are in a very privileged position,
and the Kmart Australia team and I will take every opportunity we can to assist
and support the factories where we operate to be the best business operators
they can be.
Yours sincerely,
Guy Russo
Kmart Australia Managing Director
Source: www.kmart.com.au
History : Kmart Australia Limited was born out of a
joint venture between G.J Coles
&
Coy Limited (Coles) and S.S. Kresge Company in the US, with Kresge
owning
51% of the common stock in the company. They began organising
to
develop Kmart stores in Australia in 1968.
The
first store opened in Burwood East, Victoria in April 1969. The
Burwood
store opened to intense interest, with over 40,000 people passing
through
the checkouts on the first day. The doors had been closed 45
minutes
after opening as a safety measure.
In 1978
Kresge exchanged it's 51% stake in Kmart Australia for a 20%
stake
in Coles, then in 1994 Coles bought back all Coles shares from
Kresge.
A long-term licensing agreement allows Wesfarmers to use the
Kmart
name in Australia and New Zealand. In 2006, Coles Group
announced
its plans for Kmart, along with BI-LO and the Coles Group
liquor brands,
to be merged into the Coles brand. The merger would have
seen a
variety of Coles stores with different purposes,including food,
merchandise,
petrol and liquor. The plan was for the first re-branded store
to open
in 2007, with 40 stores, mostly former 'Super K' stores divided last
decade
into separate Coles and Kmart stores, reformed into Coles
Superstores.
However, in March 2007, Coles Group announced that the
plans
for these super centres were being deferred, pending the sale of all
or part
of Coles Group. In August 2007, Wesfarmers CEO Richard Goyder
said
super centres would almost certainly not be part of the Wesfarmers
approach
after taking over Coles Group. Kmart's performance immediately
prior
to the Wesfarmers takeover was poor. In May 2007, it reported a
sales
drop of 3.2% for the third quarter, and an overall drop in sales of
3.9%
for the first three quarters. Announcing its plans in August 2007 for
Coles
Group following their expected takeover, Wesfarmers said it would
consider
selling all or part of Kmart, or converting some stores to the
Target
brand.
Wesfarmers
took control of Coles Group in November 2007 and by March
2008
had decided to retain Kmart and invest $300m in the chain over the
next
five years. During the first financial year of the Wesfarmers takeover
(November
2007 to June 2008), Kmart reported revenue of A$2.45 billion,
and
EBIT of A$111 million. Kmart's performance during the 2009 financial
year
was quite poor; reporting revenue of A$4 billion and an EBIT of A$109
million.
The 2010 financial year saw Kmart with a large increase in EBIT,
reporting
revenue of A$4.02 billion and an EBIT of A$190 million, which
was an
increase in EBIT of over 74%.
Property &
Assets
Premises : The Subject operates from head office at the verified
heading address
consisting
of an administrative office.
Branches : In addition, the Subject operates from 185 Kmart
stores and 260 Kmart
Tyre
& Auto Service centres located throughout Australia and New
Zealand.
Gross Domestic
Products (GDP) & Economic Overview
Central bank : Reserve
Bank of Australia
Reserve of foreign exchange &
gold : US$ 46.714 billion
Gross domestic product - GDP : US$ 1.586 trillion
GPP (Purchasing power parity) : 954.296 billion of International
dollars
GDP per capita - current prices : US$ 68,916
GDP - composition by sector : agriculture:
4%
industry:
25.6%
services:
70.4%
Inflation : 2010: 2.8%
2011:
3.4%
2012:
2.7%
Unemployment rate : 2010: 5.2%
2011:
5.1%
2012:
5.2%
Public debt
(General Government gross debt as
a % GDP) : 2010: 20.4%
2011:
22.9%
2012:
24%
Government bond ratings : Standard & Poor's: AAA
Moody's
rating: Aaa
Moody's
outlook: STA
Market value of publicly traded
shares : US$1.198 trillion
Largest companies in the country : Qantas Airways (Airline),Coca-Cola
Amatil (Beverages), CSL (Biotechs),
Brambles (Business & Personal
Services),Crown Ltd (Casinos &
aming), Amcor (Containers & Packaging),Suncorp-Metway (Diversified
Insurance), BHP Billiton (Diversified Metals & Mining),Newcrest Mining
(Diversified Metals & Mining), Orica (Diversified Metals & Mining),
Iluka Resources (Diversified Metals & Mining), Origin Energy (Electric
Utilities), AGL Energy (Electric Utilities), Wesfarmers (Food Retail), Woolworths
(Food Retail), Metcash (Food Retail), Macquarie Group (Investment services),
AMP (Investment services), Challenger Ltd (Investment services), Fortescue
Metals Group (Iron & Steel), Bluescope Steel (Iron & Steel),
Commonwealth Bank (Major Banks), Westpac Banking Group (Major Banks), National
Australia Bank (Major Banks), ANZ (Major Banks), Woodside Petroleum (Oil &
Gas Operations), Santos (Oil & Gas Operations), Caltex Australia (Oil &
Gas Operations), WorleyParsons (Oil Services & Equipment), Toll Holdings
(Other Transportation), Transurban Group (Other Transportation), QBE Insurance
Group (Property & Casualty Insurance), Insurance Australia Group (Property
& Casualty Insurance), QR National (Railroads), Westfield Group (Real
Estate), Stockland Australia (Real Estate), Westfield Retail Trust (Real
Estate), Lend Lease (Real Estate), CFS Retail Property Trust (Real Estate),
Goodman Group (Real Estate), Bendigo & Adelaide Bank (Regional Banks), Bank
of Queensland (Regional Banks), Incitec Pivot (Specialized Chemicals), Telstra
(Telecommunications Services)
Trade &
Competitiveness Overview
Total exports : US$263.9 billion
Exports commodities : Coal, iron ore, gold, meat, wool,
alumina, wheat, machinery and transport
equipment
Total imports : US$239.7 billion
Imports commodities : Machinery and transport
equipment, computers and office machines,
telecommunication equipment and parts; crude oil and petroleum
products
Export - major partners : China 27.4%, Japan 19.2%, South
Korea 8.9%, India 5.8%
Import - major partners : China 18.5%, US 11.4%, Japan 7.9%,
Singapore 6.3%, Germany 4.7%
FDI Inflows : 2009: US$26,554 million
2010:
US$35,556 million
2011:
US$41,317 million
FDI Outflows : 2009: US$16,693
million
2010:
US$12,791 million
2011:
US$19,999 million
Best countries for doing business :
10 out of 185 countries
Global competitiveness ranking : 20
(ranking by country on a basis of 144, the first is the best)
Country and
Population Overview
Total population : 22.68 million
Total area : 7,692,024 km2
Capital : Canberra
Currency : Australian dollars (AUD)
Internet users as % of total
Population 79%
Purchase Term
Local : Prepayment, Bank transfer, D/P, Prepayment,
Credit 30-120 days
International : L/C, Telegraphic transfer, D/P,
Prepayment, Credit 30-120 days
Sales Term
Local : Cash, Credit card
Trade Reference/
Payment Behaviour
Comments : As local and international trade references were not
supplied, the Subject's
payment
track record history cannot be appropriately determined but based
on our
research, payments are believed to be met without delay.
Investigation Note
Sources : Interviews and material provided by the Subject
Other official and local business source
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.59.69 |
|
UK Pound |
1 |
Rs.91.66 |
|
Euro |
1 |
Rs.78.69 |
INFORMATION DETAILS
|
Report Prepared
by : |
MNL |
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.