MACRO METALS LIMITED — Regulatory Filings 2008

Apr 29, 2008

Rule 4.7B

Appendix 4C

Quarterly report for entities admitted on the basis of commitments

Name of entity

Brainytoys Limited BRT

ABN

28 001 894 033

Quarter ended ("current quarter")

31 March 2008

Consolidated statement of cash flows

		Current quarter	Year to date
Cash flows related to operating activities		\$A'000	(9 Months)
			\$A'000
1.1	Receipts from customers **	1,920	1,943
1.2	Payments for $(a)$ staff costs	(403)	(636)
	(b) advertising and marketing	(462)	(706)
	(c) research and development	(35)	(395)
	(d) leased assets
	(e) other working capital	(2, 349)	(2,752)
1.3	Dividends received
1.4	Interest and other items of a similar nature	46	57
	received
1.5	Interest and other costs of finance paid	(15)	(25)
1.6	Income taxes paid	(126)	(126)
1.7	Other (provide details if material)
	Net operating cash flows	(1, 424)	(2,640)

** Current quarter includes consolidated operational cash-flows from 4 subsidiaries / businesses acquired effectively as from 1st January 2008.

		Current quarter \$A'000	Year to date (6 Months) SA'000
1.8	Net operating cash flows (carried forward)	1,424	(2,640)
	Cash flows related to investing activities

• See chapter 19 for defined terms.

1.9	Payment for acquisition of: (a) businesses (item 5) (b) equity investment	(790)	(1,910)
	(c) intellectual property (d) physical non-current assets (e) other non-current assets	(77)	(77)
1.10	Proceeds from disposal of: (a) businesses (item 5)
	(b) equity investment
	(c) intellectual property (d) physical non-current assets
	(e) other non-current assets
1.11 1.12	Loans to other entities Loans repaid by other entities
1.13	Other (provide details if material)
	Net investing cash flows	(867)	(1,987)
1.14	Total operating and investing cash flows	(2,291)	(4,627)
	Cash flows related to financing activities
1.15	Proceeds from issues of shares, options, etc. net of costs	843	3,840
1.16	Proceeds from sale of forfeited shares
1.17	Proceeds from borrowings (secured convertible notes)	800	800
1.18 1.19	Repayment of borrowings Dividends paid
1.20	Other (provide details if material)
	Net financing cash flows	1,643	4,640
	Net increase (decrease) in cash held	(648)	13
1.21 1.22	Cash at beginning of quarter/year to date Exchange rate adjustments to item 1.20	1,314	653
1.23	Cash at end of quarter	666	666

$+$ See chapter 19 for defined terms.

Payments to directors of the entity and associates of the directors Payments to related entities of the entity and associates of the related entities

		Current quarter SA'000
1.24	Aggregate amount of payments to the parties included in item 1.2	(107)
1.25	Aggregate amount of loans to the parties included in item 1.11	э.

1.26 Explanation necessary for an understanding of the transactions

Payments in accordance with service agreements with entities associated with the directors

Non-cash financing and investing activities

• $2.1$ Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities but did not involve cash flows Allocation of 19,048,000 ordinary shares at 15 cents ( $=$ \$A2,857,200) as part payment for purchase of business and assets of Marshmallow Fun Company
• $2.2$ Details of outlays made by other entities to establish or increase their share in businesses in which the reporting entity has an interest

Financing facilities available

Add notes as necessary for an understanding of the position. (See AASB 1026 paragraph 12.2).

		Amount available \$A'000	Amount used \$A'000
3.1	Loan facilities - unsecured, convertible Loan facilities - secured, convertible	300 1,000	300 800
3.2	Credit standby arrangements

⁺ See chapter 19 for defined terms.

Reconciliation of cash

Reconciliation of cash at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts is as follows.		Current quarter \$A'000	Previous quarter \$A'000
4.1	Cash on hand and at bank	666	1.314
4.2	Deposits at call
4.3	Bank overdraft	$\overline{\phantom{a}}$
4.4	Other (provide details)
	Total: cash at end of quarter (item 1.22)	666	1.314

Acquisitions and disposals of business entities

		Acquisitions (Item 1.9(a))	Disposals (Item 1.10(a))
5.1	Name of entity	Enertec Enterprises Ltd (1) Reveal Entertainment, (2) Inc Marshmallow $\&$ Fun. Company
		Toyway Ltd (3)
5.2	Place of incorporation or registration	$\left(1\right)$ Hong Kong (2) Texas, USA (3) United Kingdom
5.3	Consideration for acquisition or disposal	(1) Progress payment \$16 Progress payment \$456 (2) Progress payment \$318 (3)
5.4	Total net assets	\$1,016 (1) \$3,421 (2) \$330 (3)
5.5	Nature of business	hobbies Toys, and games distributors

Compliance statement

• This statement has been prepared under accounting policies which comply with accounting $\mathbf{1}$ standards as defined in the Corporations Act (except to the extent that information is not required because of note 2) or other standards acceptable to ASX.
• $\overline{2}$ This statement does give a true and fair view of the matters disclosed.

Sign here:

Date: 30^th April 2008

Company secretary

⁺ See chapter 19 for defined terms.

Print name: Graham Nicol

Notes

• $\mathbf{1}$ . The quarterly report provides a basis for informing the market how the entity's activities have been financed for the past quarter and the effect on its cash position. An entity wanting to disclose additional information is encouraged to do so, in a note or notes attached to this report.
• 1. The definitions in, and provisions of, AASB 1026: Statement of Cash Flows apply to this report except for the paragraphs of the Standard set out below.
• $6.2$ - reconciliation of cash flows arising from operating activities to operating profit or loss
• 9.2 - itemised disclosure relating to acquisitions
• itemised disclosure relating to disposals 9.4
• $12.1(a)$ policy for classification of cash items
• $12.3$ - disclosure of restrictions on use of cash
• 13.1 - comparative information

⁺ See chapter 19 for defined terms.