Introduction

Just Group is one of the famous company in Australia. It is mainly known for its
clothing business. It also manufactures some other products like jewellery,
sunglasses, footwear, belt, ladies bags and stationery products. It has seven brands
with the name of Just Jeans, Jay Jays, Jacqui E, Portmans, Peter Alexander, Dotti,
and Smiggle. Just group was opened its first store in Chapel Street, Prahran
(Melbourne) in December 1970 with the name of Just Jeans. Just Jeans was
established by the Kimberley family. In 2004, it was changed his name from Just
Jeans to The Just Group which is a limited company. In 1970, the business was
running very well and with the grown of the business, company was started to open
different stores at different places.
Just Group is a world wide company and it has many stores at different places in
different countries like United State of America, New Zealand and South Africa. But
Company has maximum stores in Australia and New Zealand as compare to United
State and South Africa. The company has more than 850 stores in which 810 stores
are established in Australia and New Zealand. In 2007, the company had more than
810 stores as compare to 2006 company had only 775 stores in these two countries.
Just Group is famous for its well known brand cloths and every brand knows for its
different types of products for e.g. Just Jeans is known for the casual wear of men
and women, Jay Jays is manly known for the youth casual, street and surf wear,
Jacqui E is known for the young mums as like business women, Portmans provides
the satisfaction to the young women when she wants to free or goes some where for
fun, Peter Alexander has designed for the young children, men and women offering
them a life style of sleepwear, loungewear, home wear and footwear gifts, Dotti brand
of just group is very fast growing brand in the industry which deals with the hot &
sexy fashion hunters and discoveries, and the last brand which is a Smiggle
produces good looking stationery products at the reasonable prices.
Just group has more than 850 stores in which approximately 6000 employees are
working. All stores of the just group is established on the lease hold basis and more
than 90% of leases have fixed rent with standard review terms (e.g. CPI increase).
Key Elements of Financial Performance

The Just Group is one of the most popular retail company in Australia which is known
for its fashionable goods.
According to the financial performance of the company which represents in the
annual director’s report 2007 under the operating and financial review as company’s
net profits was $63.9 million after taxes at the end of the financial year 2007 as
compare to 2006 it was going to increase 11.7%. The company has a sound position
in the market and the capital structure of company is very strong. So the capital
expenditure of the company was increased in 2007 ($26.9 million) as compare to
2006 ($25.4 million). In 2007, company’s unused working capital was $20 millions.
The company was spending money for the dividends, debts of the company and in
the business also because of the cash exceeding.
Significant Changes in Financial Affairs/Performance

In 2007, there were major significant changes in the financial affairs and performance
which is shown in the director’s report under the significant changes in the state of
affairs and events after the balance date of the company. When the market was
down, at that time the company bought its own share (16,669,118 shares total
amount of $65.7millions including related cost) from the market. With this fact share
capital of the company was decreased by $1.7millions and retained earning of the
company was decreased by $64millions.
The important day for the company was on 19th July 2007, when the company was
taking under the whole Smiggle Pty Ltd for total amount of $29millions. The deal was
completed last year 2007 on 27th August. The company was liable to pay the initial
amount $23.2millions and the rest of money $5.8millions in 2009 and 2010 on
average earning basis for the business of Smiggle Pty Ltd. The board of directors
announced dividend of 10c per share in 2007. This was paid on 14th November 2007.
With the impact of the transaction companies capital was going to up and cash at
bank was going down because of the early payment.
Inventories and accounts receivable and other relevant accounting
policies

The company have so many accounting policies under the director’s report 2007
which is shown under the statement of significant accounting policies like inventory,
accounts receivable, foreign currency translation etc. which is based on the
Australian Accounting Standard.
Inventory, in simple words, is the closing stock at end of the accounting period.
There are different methods to measure the inventory like FIFO (first in first out
method) and the Weighted Average Method. The method which is adopted by the
company is the FIFO method.
Inventory is always calculated on the lower value of the products or the net realisable
value. Net realisable value means approximate selling price maintained by the
ordinary course of business. The value of inventory includes the value of product as
well as cost of freight, handling, storage and other direct or indirect expenses which
were spent to maintain the inventory to use in future.
In the financial statement inventory is shown under the note 7 and at the end of the
year 2007 the consolidated cost of inventory was $61.25millions.
Accounts receivable is that when the goods are sold on credit. Generally the
payment period for credit sales is 30 or 60 days but it may also depend on the
company’s policy.
Account receivable is shown in the financial statement under the note 6 and in 2007,
consolidated cost for the accounts receivable was $2.512millions.
Basis of consolidation means merge the financial statements of the company to
see the financial result at the end of the year.
Foreign currency translation means the company has worldwide business so the
functional method has adopted in which trading in Australia is on the basis of
Australian dollar and under the overseas functional is based on the New Zealand
dollar.
Cash and Cash Equivalent is that term which relates with the cash in hand or at
bank. In balance sheet, it relates with the short term time period just for three months
or less.
Goodwill is an intangible asset which is recorded on the asset side in a balance
sheet. Goodwill is that amount which depends on the market value of the business.
Goodwill is shown in the financial statement under the note 11 and the consolidated
value of the goodwill at the end of the year was $90.562millions.
Leases Company has the property on the lease basis and the amount is entered in
the income statement as an expenses.
Accounts Payable relates with the credit purchases. The term for payment is under
the condition of between 7 to 45 days. Accounts payable is shown in the financial
statement under the note 13 and the consolidated value of the accounts payable at
the end of the year was $50.415millions.
Interest bearing liabilities is an expense which comes in progress on any kind of
loans, borrowings under some rules and conditions at the time of contract.
Employee’s benefits relates with the wages and salaries, superannuation funds and
also with the long service leave.
Income Tax is paid and recovered under the rules of the tax rates and tax laws
under the taxation authorities. Income tax is shown in the financial statement under
the note 5 and the consolidated value of the income tax at the end of the year was
$26.421millions.
Name of the Auditor and Type of the Audit Report

Ernst & Young are the auditors of the Just Group Ltd. They have the office in 8
Exhibition Street, Melbourne. The name of the audit report is the Independent Audit
Report. It is known as independent auditors report because it includes in the
director’s report, financial report and the remuneration report. The auditors were
performed the audit report under the Australian Auditing Standards. That was the
responsibility of the auditors to follow the rules of the auditing standards for showing
the fair and true audit report. The audit report prepared by the auditors was based on
the evidences of financial records with judgment. The report was based under the
Corporation Act 2001 on the independence declaration.
The audit services of auditors are shown in the financial report under the note 25 and
the auditor’s remuneration for the audit services was $200thousands.
Non-Audit Services and Relevant Sections of Annual Report

Non-Audit services means self rules was not negotiating for e.g. workers
compensation certificates and taxation advice. The provisions of the non-audit
services were very friendly with standard rules of the Corporation Act 2001.
The non-audit services of auditors are shown in the financial report under the note 25
and the auditor’s remuneration for the non audit services was $123.85thousands.