|
Report Date : |
10.04.2013 |
IDENTIFICATION DETAILS
|
Name : |
CLARK DIAMONDS
LTD. |
|
|
|
|
Registered Office : |
62 Tenby Street
North Birmingham, B1 3EG |
|
|
|
|
Country : |
United Kingdom |
|
|
|
|
Financials (as on) : |
30.06.2012 |
|
|
|
|
Date of Incorporation : |
06.09.1984 |
|
|
|
|
Com. Reg. No.: |
01846352 |
|
|
|
|
Legal Form : |
Private Independent |
|
|
|
|
Line of Business : |
Diamond merchants. |
|
|
|
|
No. of Employees : |
14 |
RATING & COMMENTS
|
MIRA’s Rating : |
B |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Status : |
Moderate |
|
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 – June 30th, 2012
|
Country Name |
Previous Rating (31.03.2011) |
Current Rating (30.06.2012) |
|
United Kingdom |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
UNITED KINGDOM - ECONOMIC OVERVIEW
The UK, a leading trading power and financial center, is the third largest economy in Europe after Germany and France. Over the past two decades, the government has greatly reduced public ownership and contained the growth of social welfare programs. Agriculture is intensive, highly mechanized, and efficient by European standards, producing about 60% of food needs with less than 2% of the labor force. The UK has large coal, natural gas, and oil resources, but its oil and natural gas reserves are declining and the UK became a net importer of energy in 2005. Services, particularly banking, insurance, and business services, account by far for the largest proportion of GDP while industry continues to decline in importance. After emerging from recession in 1992, Britain's economy enjoyed the longest period of expansion on record during which time growth outpaced most of Western Europe. In 2008, however, the global financial crisis hit the economy particularly hard, due to the importance of its financial sector. Sharply declining home prices, high consumer debt, and the global economic slowdown compounded Britain's economic problems, pushing the economy into recession in the latter half of 2008 and prompting the then BROWN (Labour) government to implement a number of measures to stimulate the economy and stabilize the financial markets; these include nationalizing parts of the banking system, temporarily cutting taxes, suspending public sector borrowing rules, and moving forward public spending on capital projects. Facing burgeoning public deficits and debt levels, in 2010 the CAMERON-led coalition government (between Conservatives and Liberal Democrats) initiated a five-year austerity program, which aims to lower London's budget deficit from over 10% of GDP in 2010 to nearly 1% by 2015. In November 2011, Chancellor of the Exchequer George OSBORNE announced additional austerity measures through 2017 because of slower-than-expected economic growth and the impact of the euro-zone debt crisis. The CAMERON government raised the value added tax from 17.5% to 20% in 2011. It has pledged to reduce the corporation tax rate to 23% by 2015. The Bank of England (BoE) implemented an asset purchase program of up to £325 billion (approximately $525 billion) as of February 2011. During times of economic crisis, the BoE coordinates interest rate moves with the European Central Bank, but Britain remains outside the European Economic and Monetary Union (EMU).
Source
: CIA
Clark Diamonds Ltd.
|
|
|
||||||||||||||||||||||||||||||||||||||||||||||||
Business Description
|
Diamond merchants. |
Industry
|
Industry |
|
|
ANZSIC 2006: |
|
|
NACE 2002: |
|
|
NAICS 2002: |
423990 - Other Miscellaneous Durable Goods Merchant
Wholesalers |
|
UK SIC 2003: |
|
|
UK SIC 2007: |
|
|
US SIC 1987: |
Key Executives
|
Financial Summary
|
||||||||||||||||||||
1 - Profit & Loss Item Exchange Rate: USD 1 = GBP 0.6313531
2 - Balance Sheet Item Exchange Rate: USD 1 = GBP 0.6452901
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Executives Report
|
|||||||||||||||||||||||||||||||
Annual Return
Date: 19 Jan 2013
Total Issued Capital (GBP 000): 3
|
Individual Directors |
|||||||
|
|
|||||||
|
Name |
Status |
DOB |
Filed Address |
Appointment Date |
Resignation Date |
Summary of Directorships |
|
|
Current |
24 Mar 1954 |
Redhill House, Bromsgrove Road, |
19 Jan 1993 |
NA |
Current:1 |
|
|
|
Previous |
18 May 1941 |
34 Sharrat Field, Four Oaks, |
19 Jan 1993 |
31 Mar 2004 |
Current:0 |
|
|
|
|
|
||||||
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
Corporate Directors |
|
|
|
There are no corporate directors for this
company. |
|
|
|
Individual Secretaries |
|||||||
|
|
|||||||
|
Name |
Status |
DOB |
Filed Address |
Appointment Date |
Resignation Date |
Summary of Directorships |
|
|
Current |
NA |
33 Doveridge Road, Hall Green, |
01 Nov 2003 |
NA |
Current:4 |
|
|
|
Previous |
24 Mar 1954 |
Redhill House, Bromsgrove Road, |
19 Jan 1993 |
01 Nov 2003 |
Current:1 |
|
|
|
|
|
||||||
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
Corporate Secretaries |
|
|
|
There are no corporate secretaries for this
company. |
|
|
|
Individual Shareholders |
||||||
|
|
||||||
|
Name |
Share Details |
Share Type |
# of Shares |
Share Price (GBP) |
Share Value (GBP) |
% of Total Shares |
|
Mark Coleman Barrows |
3000 Ordinary GBP 1.00 |
Ordinary |
3,000 |
1.00 |
3,000.00 |
100.00 |
|
|
|
|
|
|
|
|
|
Corporate Shareholders |
|
|
|
There are no corporate shareholders for
this company. |
|
|
|
Financials in:
USD (mil) |
|
|
Except for
share items (millions) and per share items (actual units) |
|
|
|
|
|
|
|
30-Jun-2012 |
30-Jun-2011 |
30-Jun-2010 |
30-Jun-2009 |
30-Jun-2008 |
|
Period Length |
52 Weeks |
52 Weeks |
52 Weeks |
52 Weeks |
52 Weeks |
|
Filed Currency |
GBP |
GBP |
GBP |
GBP |
GBP |
|
Exchange Rate (Period Average) |
0.631353 |
0.629106 |
0.633607 |
0.627423 |
0.499214 |
|
Consolidated |
No |
No |
No |
No |
No |
|
|
|
|
|
|
|
|
Total Turnover |
17.7 |
15.5 |
14.6 |
- |
- |
|
Cost of Sales |
15.2 |
12.4 |
12.0 |
- |
- |
|
Gross Profit |
2.5 |
3.1 |
2.6 |
2.1 |
3.5 |
|
Depreciation |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
|
Other Expenses |
2.4 |
2.1 |
2.0 |
1.7 |
2.1 |
|
Operating Profit |
0.1 |
- |
0.6 |
0.4 |
- |
|
Other Income |
0.0 |
0.0 |
0.0 |
0.0 |
0.1 |
|
Interest Paid |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
|
Exceptional Income |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
|
Discontinued Operations |
0.0 |
- |
0.0 |
0.0 |
0.0 |
|
Profit Before Taxes |
0.1 |
1.0 |
0.6 |
0.4 |
1.5 |
|
Tax Payable / Credit |
0.0 |
0.3 |
0.1 |
0.1 |
0.4 |
|
Extraordinary Items/Debits |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
|
Dividends |
0.5 |
0.5 |
0.5 |
0.5 |
0.6 |
|
Profit After Taxes |
-0.4 |
0.3 |
0.0 |
-0.2 |
0.5 |
|
Minority Interests (Profit & Loss) |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
|
Audit Fees |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
|
Number of Employees |
14 |
13 |
11 |
11 |
11 |
|
Wages |
1.4 |
1.3 |
1.3 |
1.1 |
1.4 |
|
Social Security Costs |
0.2 |
0.2 |
0.2 |
0.1 |
0.2 |
|
Other Pension Costs |
0.2 |
0.2 |
0.1 |
0.1 |
0.1 |
|
Employees Remuneration |
1.7 |
1.7 |
1.5 |
1.4 |
1.6 |
|
Directors Remuneration |
0.4 |
0.4 |
0.5 |
0.5 |
0.6 |
|
Highest Paid Director |
0.4 |
0.4 |
0.5 |
0.5 |
0.6 |
|
|
|
Annual Balance Sheet |
|
Financials in: USD (mil) |
|
|
30-Jun-2012 |
30-Jun-2011 |
30-Jun-2010 |
30-Jun-2009 |
30-Jun-2008 |
|
Filed Currency |
GBP |
GBP |
GBP |
GBP |
GBP |
|
Exchange Rate |
0.64529 |
0.622878 |
0.668405 |
0.60722 |
0.502475 |
|
Consolidated |
No |
No |
No |
No |
No |
|
|
|
|
|
|
|
|
Land & Buildings |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
|
Fixtures & Fittings |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
|
Plant & Vehicles |
0.0 |
0.0 |
0.0 |
0.0 |
0.1 |
|
Total Tangible Fixed Assets |
0.0 |
0.1 |
0.1 |
0.1 |
0.1 |
|
Intangible Assets |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
|
Investments |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
|
Total Fixed Assets |
0.0 |
0.1 |
0.1 |
0.1 |
0.1 |
|
Stocks |
4.2 |
4.6 |
4.3 |
3.5 |
4.2 |
|
Work in Progress |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
|
Total Stocks Work In Progress |
4.2 |
4.6 |
4.3 |
3.5 |
4.2 |
|
Trade Debtors |
3.0 |
2.6 |
2.5 |
2.6 |
3.1 |
|
Inter-Company Debtors |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
|
Director Loans |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
|
Other Debtors |
0.1 |
0.1 |
0.1 |
0.1 |
0.0 |
|
Total Debtors |
3.1 |
2.7 |
2.5 |
2.6 |
3.2 |
|
Cash and Equivalents |
1.5 |
1.4 |
0.9 |
1.3 |
1.7 |
|
Other Current Assets |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
|
Total Current Assets |
8.8 |
8.7 |
7.7 |
7.4 |
9.2 |
|
Total Assets |
8.9 |
8.7 |
7.7 |
7.5 |
9.3 |
|
Trade Creditors |
3.1 |
2.1 |
1.8 |
1.6 |
1.7 |
|
Bank Overdraft |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
|
Inter-Company Creditors |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
|
Director Loans (Current Liability) |
1.2 |
1.1 |
0.9 |
0.5 |
0.8 |
|
Hire Purchase (Current Liability) |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
|
Finance Lease (Current Liability) |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
|
Total Finance Lease/Hire Purchase (Current
Liability) |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
|
Total Short Term Loans |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
|
Accruals/Deferred Income (Current
Liability) |
0.0 |
0.0 |
0.4 |
0.4 |
0.0 |
|
Social Security/VAT |
0.3 |
0.4 |
0.3 |
0.2 |
0.5 |
|
Corporation Tax |
0.0 |
0.3 |
0.1 |
0.1 |
0.4 |
|
Dividends (Current Liability) |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
|
Other Current Liabilities |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
|
Total Current Liabilities |
4.6 |
3.9 |
3.5 |
2.9 |
3.4 |
|
Group Loans (Long Term Liability) |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
|
Director Loans (Long Term Liability) |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
|
Hire Purchase (Long Term Liability) |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
|
Leasing (Long Term Liability) |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
|
Total Hire Purchase Loans (Long Term
Liability) |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
|
Other Long Term Loans |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
|
Accruals/Deferred Income (Long Term
Liability) |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
|
Other Long Term Liabilities |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
|
Total Long Term Liabilities |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
|
Deferred Taxation |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
|
Other Provisions |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
|
Total Provisions |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
|
Issued Capital |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
|
Share Premium Accounts |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
|
Revaluation Reserve |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
|
Retained Earnings |
4.2 |
4.8 |
4.2 |
4.6 |
5.8 |
|
Other Reserves |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
|
Minority Interests (Balance Sheet) |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
|
Total Shareholders Funds |
4.2 |
4.8 |
4.2 |
4.6 |
5.8 |
|
Net Worth |
4.2 |
4.8 |
4.2 |
4.6 |
5.8 |
|
|
|
Annual Cash Flows |
|
Financials in: USD (mil) |
|
|
30-Jun-2012 |
30-Jun-2011 |
30-Jun-2010 |
30-Jun-2009 |
30-Jun-2008 |
|
Period Length |
52 Weeks |
52 Weeks |
52 Weeks |
52 Weeks |
52 Weeks |
|
Filed Currency |
GBP |
GBP |
GBP |
GBP |
GBP |
|
Exchange Rate (Period Average) |
0.631353 |
0.629106 |
0.633607 |
0.627423 |
0.499214 |
|
Consolidated |
No |
No |
No |
No |
No |
|
|
|
|
|
|
|
|
Net Cash Flow From Operating Activities |
0.9 |
1.1 |
0.3 |
0.6 |
1.6 |
|
Net Cash Flow from ROI and Servicing of
Finance |
0.0 |
0.0 |
0.0 |
0.0 |
0.1 |
|
Taxation |
-0.3 |
-0.1 |
-0.1 |
-0.3 |
-0.3 |
|
Capital Expenditures |
0.0 |
0.0 |
0.0 |
0.0 |
-0.1 |
|
Acquisitions and Disposals |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
|
Paid Up Equity |
-0.5 |
-0.5 |
-0.5 |
-0.5 |
-0.6 |
|
Management of Liquid Resources |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
|
Net Cash Flow From Financing |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
|
Increase in Cash |
0.1 |
0.4 |
-0.3 |
-0.2 |
0.7 |
|
|
|
Annual Ratios |
|
Financials in: USD (mil) |
|
|
30-Jun-2012 |
30-Jun-2011 |
30-Jun-2010 |
30-Jun-2009 |
30-Jun-2008 |
|
Period Length |
52 Weeks |
52 Weeks |
52 Weeks |
52 Weeks |
52 Weeks |
|
Filed Currency |
GBP |
GBP |
GBP |
GBP |
GBP |
|
Exchange Rate |
0.64529 |
0.622878 |
0.668405 |
0.60722 |
0.502475 |
|
Consolidated |
No |
No |
No |
No |
No |
|
|
|
|
|
|
|
|
Current Ratio |
1.90 |
2.23 |
2.19 |
2.60 |
2.66 |
|
Liquidity Ratio |
0.99 |
1.05 |
0.97 |
1.37 |
1.43 |
|
Stock Turnover |
4.09 |
3.41 |
3.26 |
- |
- |
|
Credit Period (Days) |
64.09 |
61.59 |
64.88 |
- |
- |
|
Working Capital by Sales |
24.20% |
30.45% |
30.01% |
- |
- |
|
Trade Credit by Debtors |
1.02 |
0.79 |
0.74 |
0.64 |
0.54 |
|
Return on Capital |
1.68% |
21.45% |
13.81% |
8.69% |
25.50% |
|
Return on Assets |
0.80% |
11.87% |
7.56% |
5.38% |
16.02% |
|
Profit Margin |
0.41% |
6.61% |
4.20% |
- |
- |
|
Return on Shareholders Funds |
1.68% |
21.45% |
13.81% |
8.69% |
25.50% |
|
Borrowing Ratio |
27.42% |
22.61% |
20.19% |
11.83% |
14.23% |
|
Equity Gearing |
47.72% |
55.35% |
54.72% |
61.88% |
62.82% |
|
Interest Coverage |
- |
- |
- |
4,902.06 |
- |
|
Sales by Tangible Assets |
377.55 |
279.95 |
263.22 |
- |
- |
|
Average Remuneration per Employee |
0.1 |
0.1 |
0.1 |
0.1 |
0.1 |
|
Profit per Employee |
0.0 |
0.1 |
0.1 |
0.0 |
0.1 |
|
Sales per Employee |
1.2 |
1.2 |
1.3 |
- |
- |
|
Capital Employed per Employee |
0.3 |
0.4 |
0.4 |
0.4 |
0.5 |
|
Tangible Assets per Employee |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
|
Total Assets per Employee |
0.6 |
0.7 |
0.7 |
0.7 |
0.8 |
|
Employee Remuneration by Sales |
9.62% |
10.75% |
10.57% |
- |
- |
|
Creditor Days (Cost of Sales Based) |
76.26 |
60.39 |
58.22 |
- |
- |
|
Creditor Days (Sales Based) |
65.66 |
48.35 |
47.76 |
- |
- |
DIAMOND INDUSTRY –
INDIA
-
From time immemorial, India is well known in the world
as the birthplace for diamonds. It is difficult to trace the origin of
diamonds but history says that in the remote past, diamonds were mined only in
India. Diamond production in India can be traced back to almost 8th
Century B.C. India, in fact, remained undisputed leader till 18th
Century when Brazilian fields were discovered in 1725 followed by emergence of
S. Africa, Russia and Australia.
-
The achievement of the Indian diamond industry was
possible only due to combination of the manufacturing skills of the Indian
workforce and the untiring and unflagging efforts of the Indian diamantaires,
supported by progressive Government policies.
-
The area of study of family owned diamond businesses
derives its importance from the huge conglomerate of family run organizations
which operate in the diamond industry since many generations.
-
Some of the basic traits of family run business
enterprises include spirit of entrepreneurship, mutual trust lowers transaction
costs, small, nimble and quick to react, information as a source of advantage
and philanthropy.
-
Family owned diamond businesses need to improve on
many fronts including higher standard of corporate governance, long-term
performance – focused strategies, modern management and technology.
-
The diamond jewellery industry in India today may be
more than Rs 60000 mil and is rated amongst the fastest growing in the
world. Indi ranks third in the world in domestic diamond consumption.
-
Utmost caution is to be exercised while dealing with
some medium and large diamond traders which are usually engaged in fictitious
import – export, inter-company transactions, financially assisted by banks. In
the process, several public sector banks lost several hundred million rupees.
They mostly diverted borrowed money for diamond business into real estate and
capital markets.
-
Excerpts from Times of India dated 30th
October 2010 is as under –
DIAMOND
SAGA – DIRTY DOZEN STUCK WITH 2K CR DEBT
This could be the biggest credibility crisis
the Indian diamond industry has ever faced. Fifteen banks run the risk of
losing Rs 2000 crore lent to a dozen diamond firms in Surat. Until about two
months ago, they had not repaid these dues. Bankers believe many
diamantaires borrowed money during the economic downturn two years ago and
diverted funds to businesses like real estate and capital markets. Many of
themselves made money from these businesses but their diamond companies have
gone sick and declared insolvency.
-
Most of the money borrowed from the banks in the name
of their diamond business has been diverted in real estate and the share
market. The banks are not in a position to seize their properties because in
many cases, these were purchased in the name of their relatives and friends.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.46 |
|
UK Pound |
1 |
Rs.83.13 |
|
Euro |
1 |
Rs.70.99 |
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.