MIRA INFORM REPORT

 

 

Report Date :

09.12.2014

 

IDENTIFICATION DETAILS

 

Name :

EMDICO (LONDON) LIMITED

 

 

Registered Office :

Suite 115/116 100 Hatton Garden , London, Ec1n 8nx       

 

 

Country :

United Kingdom

 

 

Financials (as on) :

31.03.2013

 

 

Date of Incorporation :

03.10.1985

 

 

Com. Reg. No.:

01952530

 

 

Legal Form :

Private limited with Share Capital

 

 

Line of Business :

Engaged in Cutting, Designing, Manufacturing and the Distribution of Polished Diamonds, Coloured Gemstones and Diamond Jewellery in platinum and gold

 

 

No of Employees :

10 (31.03.2013)

 

 

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 – September 30, 2014

 

Country Name

Previous Rating

(30.06.2014)

Current Rating

(30.09.2014)

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. 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, are key drivers of British GDP growth. Manufacturing, meanwhile, has declined in importance but still accounts for about 10% of economic output. 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. Falling 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 included 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 aimed to lower London's budget deficit from about 11% of GDP in 2010 to nearly 1% by 2015. In November 2011, Chancellor of the Exchequer George OSBORNE announced additional austerity measures through 2017 largely due to 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 21% by 2014. The Bank of England (BoE) implemented an asset purchase program of £375 billion (approximately $605 billion) as of December 2013. 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). In 2012, weak consumer spending and subdued business investment weighed on the economy, however, in 2013 GDP grew 1.4%, accelerating unexpectedly in the second half of the year because of greater consumer spending and a recovering housing market. The budget deficit is falling but remains high at nearly 7% and public debt has continued to increase.

 

Source : CIA

 

 

Company name & address

 

EMDICO (LONDON) LIMITED

SUITE 115/116 100 HATTON GARDEN

LONDON

EC1N 8NX

United Kingdom

Telephone                     +44 (0) 207 405 0865
Fax:                              +44 (0) 207 405 0914

Website                        www.emdico.co.uk

Company Number:         01952530

Status:                          Active - Accounts Filed

Foundation:                   03/10/1985

 

 

Comments

 

No exact match CCJs are recorded against the company. Net Worth increased by 1.4% during the latest trading period. A 1.3% growth in Total Assets occurred during the latest trading period. Pre-tax profits increased by 14.4% compared to the previous trading period. The company saw an increase in their Cash Balance of 14.4% during the latest trading period. The audit report contains no adverse comments.

 

Sales in the latest trading period decreased 7.2% on the previous trading period.

 

No recent changes in directorship are recorded. The company is part of a group. The company was established over 29 years ago.

 

 

Legal form

 

Private limited with Share Capital

 

 

Foundation

 

03/10/1985

 

 

Company No.

 

01952530

 

Shareholders

                                               

Name

Currency

Number of shares

Share type

Nominal value

MR KRISHNA GOPAL KHANDELWAL

GBP

75,050

ORDINARY

1

MR SANJAY KUMAR KHANDELWAL

GBP

75,050

ORDINARY

1

Total Share Capital

GBP 150,100

 

Management

                                   

Directors

Name

Address:

Date of birth

Nationality

Appointment date

Mr Krishna Gopal Khandelwal

85 Briar Avenue, London SW16 3AG

24/12/1940

British

10/12/1991

Mr Sanjay Kumar Khandelwal

Flat 53, 125 Park Road, London NW8 7JS

18/09/1966

British

10/12/1991

 

Company secretary

Name

Address:

Appointment date

 

 

Mr Krishna Gopal Khandelwal

85 Briar Avenue, London SW16 3AG

10/12/1991

 

 

 

 

Other Known Addresses

 

Suite 115/116 100, Hatton Garden, London EC1N 8NX

 

 

Business activities  

 

Main Activity

Engaged in Cutting, Designing, Manufacturing and the Distribution of Polished Diamonds, Coloured Gemstones and Diamond Jewellery in platinum and gold

Economic data    

 

Turnover and Employees                                              

Date of Accounts

Turnover

Employees

31/03/2011

GBP 8,874,429

11

31/03/2012

GBP 8,509,327

11

31/03/2013

GBP 7,898,677

10

 

 

Supplementary data

           

Banks

 

Bank Name

Bank Branch Sort Code

BARCLAYS BANK PLC

20-65-63

 

Auditor

 

Auditor name

 

BHARAT SHAH & CO

 

 

Events

 

Company history

Date

Action

21/12/2009

Annual Returns

10/02/2010

New Accounts Filed

02/02/2011

Annual Returns

07/02/2011

New Accounts Filed

07/02/2011

New Accounts Filed

21/12/2011

Change of Company Postcode

24/12/2011

New Accounts Filed

24/12/2011

New Accounts Filed

28/12/2011

Annual Returns

19/04/2012

Change of Company Postcode

25/07/2012

Change in Reg.Office

25/07/2012

Change of Company Postcode

25/12/2012

Annual Returns

10/01/2013

New Accounts Filed

11/01/2014

New Accounts Filed

25/01/2014

Annual Returns

 

 

Mortgages

 

Charge created

28/09/1988

Charge registered

04/10/1988

Status

OUTSTANDING

Entitled person

BARCLAYS BANK PLC

Secured amount

ALL MONIES DUE OR TO BECOME DUE FROM THE COMPANY TO THE CHARGEE ON ANY ACCOUNT WHATSOEVER

Mortgage detail

(INCLUDING TRADE FIXTURES) FIXED AND FLOATING CHARGES OVER THE UNDERTAKING AND ALL PROPERTY AND ASSETS PRESENT AND FUTURE INCLUDING GOODWILL BOOKDEBTS UNCALLED CAPITAL BUILDINGS FIXTURES FIXED PLANT AND MACHINERY

 

 

Charge created

27/10/1998

Charge registered

03/11/1998

Status

OUTSTANDING

Entitled person

BARCLAYS BANK PLC

Secured amount

ALL MONIES DUE OR TO BECOME DUE FROM THE COMPANY AND INDY GEMS LIMITED TO THE CHARGEE ON ANY ACCOUNT WHATSOEVER

Mortgage detail

.  FIXED AND FLOATING CHARGES OVER THE UNDERTAKING AND ALL PROPERTY AND ASSETS PRESENT AND FUTURE INCLUDING GOODWILL BOOKDEBTS UNCALLED CAPITAL BUILDINGS FIXTURES FIXED PLANT AND MACHINERY

 

 

Charge created

12/04/2002

Charge registered

16/04/2002

Status

OUTSTANDING

Entitled person

RONALD MICHAEL HARRIS AND MALCOLM WEBBER

Secured amount

ALL MONIES DUE OR TO BECOME DUE FROM THE COMPANY TO THE CHARGEE UNDER THE TERMSOF THE AFOREMENTIONED INSTRUMENT CREATING OR EVIDENCING THE CHARGE

Mortgage detail

THE DEPOSIT ACCOUNT (AS DEFINED IN THE DEED) AND ALL MONEY FROM TIME TO TIME WITHDRAWN FROM THE DEPOSIT ACCOUNT

 

 

Charge created

27/07/2007

Charge registered

31/07/2007

Status

OUTSTANDING

Entitled person

BUCKLAND SECURITIES LIMITED

Secured amount

GBP 10,896.65 DUE OR TO BECOME DUE FROM THE COMPANY TO

Mortgage detail

GBP 10,896.65 DEPOSITED IN AN INTEREST ERANING ACCOUNT SEE THE MORTGAGE CHARGE DOCUMENT FOR FULL DETAILS

 

 

Charge created

08/06/2012

Charge registered

14/06/2012

Status

OUTSTANDING

Entitled person

HOLBORN MANAGEMENT LIMITED AND 120 HOLBORN PROPCO LIMITED

Secured amount

GBP 18,645 AND ALL OTHER MONIES DUE OR TO BECOME DUE FROM THE COMPANY TO THE CHARGEE

 

 

County Court Judgments

(CCJs)                                                                                           

 

There are no County Court Judgments listed against this company     

                                                                                                     

 

Accounts

           

Profit & Loss

 

 

 

 

 

31/03/2013

52

GBP

Group: No

31/03/2012

52 GBP

Group: No

31/03/2011

52 GBP

Group: No

31/03/2010 52

GBP Group: No

Turnover

7,898,677

8,509,327

8,874,429

7,732,051

Export

2,145,613

3,194,585

3,081,745

2,300,600

Cost of Sales

7,052,954

7,575,525

7,965,352

6,900,683

Gross Profit

845,723

933,802

909,077

831,368

Wages And Salaries

427,728

427,036

294,891

268,857

Directors Emoluments

65,756

93,812

26,119

31,349

Operating Profit

-

-

319,199

264,078

Depreciation

16,657

9,199

7,200

10,000

Audit Fees

5,500

5,500

5,500

5,000

Interests Payments

0

0

0

0

Pre Tax Profit

87,496

76,515

319,199

269,596

Taxation

-17,312

-16,524

-69,970

-56,833

Profit After Tax

70,184

59,991

249,229

212,763

Dividends Payable

42,000

42,000

72,000

62,000

Retained Profit

28,184

17,991

177,229

150,763

 

Balance Sheet

 

 

 

 

 

31/03/2013

31/03/2012

31/03/2011

31/03/2010

 

52

52

52

52

 

GBP

GBP

GBP

GBP

 

Group: No

Group: No

Group: No

Group: No

Tangible Assets

375,617

353,248

143,427

148,995

Intangible Assets

0

0

0

0

 

Stock

3,349,360

2,852,500

3,023,000

3,312,697

Trade Debtors

2,573,157

2,991,927

2,213,257

2,124,686

Cash

135,992

118,899

125,861

78,390

Other Debtors

67,626

103,726

153,455

66,769

Miscellaneous Current Assets

0

0

0

0

Total Current Assets

6,126,135

6,067,052

5,515,573

5,582,542

Trade Creditors

3,702,602

3,736,736

3,001,011

2,786,786

Bank Loans and Overdraft

599,921

473,594

364,926

524,140

Other Short Term Finance

69,470

106,371

103,400

150,972

Miscellaneous Current Liabilities

78,129

80,153

184,208

441,413

Total Current Liabilities

4,450,122

4,396,854

3,653,545

3,903,311

Bank Loans and Overdrafts LTL

599,921

473,594

364,926

524,140

Other Long Term Finance

0

0

0

0

Total Long Term Liabilities

0

0

0

0

 

Capital & Reserves

 

 

 

 

 

31/03/2013

52

GBP

Group: No

31/03/2012 52

GBP Group: No

31/03/2011 52

GBP

Group: No

31/03/2010 52

GBP Group: No

Called Up Share Capital

150,100

150,100

150,100

150,100

P and L Account Reserve

1,901,530

1,873,346

1,855,355

1,678,126

Revaluation Reserve

0

0

0

0

Sundry Reserves

0

0

0

0

Shareholders Funds

2,051,630

2,023,446

2,005,455

1,828,226

 

 

Other Financial Items

 

 

 

 

 

31/03/2013

52

GBP

Group: No

31/03/2012

52

GBP Group: No

31/03/2011

52

 GBP Group: No

31/03/2010

52

GBP Group: No

Net Worth

2,051,630

2,023,446

2,005,455

1,828,226

Working Capital

1,676,013

1,670,198

1,862,028

1,679,231

Total Assets

6,501,752

6,420,300

5,659,000

5,731,537

Total Liabilities

4,450,122

4,396,854

3,653,545

3,903,311

Net assets

2,051,630

2,023,446

2,005,455

 

1,828,226

 

 

 

Cash Flow

 

 

 

 

 

31/03/2013

31/03/2012

31/03/2011

31/03/2010

 

52

52

52

52

 

GBP

GBP

GBP

GBP

 

Group: No

Group: No

Group: No

Group: No

Net Cash Flow from Operations

0

0

0

0

Net Cash Flow before Financing

0

0

0

0

Net Cash Flow from Financing

0

0

0

0

Increase in Cash

17,093

-6,962

47,471

53,166

 

Miscellaneous

 

31/03/2013

31/03/2012

31/03/2011

31/03/2010

 

52

52

52

52

 

GBP

GBP

GBP

GBP

 

Group: No

Group: No

Group: No

Group: No

Capital Employed

2,051,630

2,023,446

2,005,455

1,828,226

 

Financial Ratios

 

 

 

 

Name

31/03/2013

31/03/2012

31/03/2011

31/03/2010

Pre Tax Profit Margin

1.11 %

0.90 %

3.60 %

3.49 %

Current Ration

1.38

1.38

1.51

1.43

Sales or Net Working Capital

4.71

5.09

4.77

4.60

Gearing

29.24 %

23.41 %

18.20%

28.67 %

Equity

31.56%

31.52%

35.44 %

31.90%

Creditor Days

170.62

159.84

123.09

131.19

Debtor Days

118.58

127.98

90.78

100.02

Liquidity or Acid test

0.62

0.73

0.68

0.58

Return on Capital Employed

4.26 %

3.78 %

15.91 %

14.74%

Return on Total Assets Employed

1.34 %

1.19%

5.64 %

4.70 %

Current Debt Ratio

2.16%

2.17%

1.82 %

2.13%

Total Debt Ratio

2.16%

2.17%

1.82 %

2.13%

Stock Turnover Ratio

42.40 %

33.52 %

34.06 %

42.84 %

Return on Net Assets Employed

4.26 %

3.78 %

15.91 %

14.74%

 

 

 

 

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.

-            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 –

 

-            Gem & Jewellery Export Promotion Council in its statistical data has shown the export of polished diamonds to have increase by 28 % in February 2013. Compared to $ 1.4 bn worth of polished diamond export in February, 2012, India exported $ 1.84 billion worth of polished diamonds in February 2013. A senior executive of GJEPC said, “Export of cut and polished diamonds started falling month-wise after the imposition of 2 % of import duty on the polished diamonds. But February, 2013 has given a new ray of hope to the industry as the export of polished diamonds has actually increased by 28 %. It means the industry  is on the track of recovery and round tripping of diamonds has stopped completely.” Demand has started coming from the US, the UK, Japan and China. India’s polished diamond export is expected to cross $ 21 bn in 2013-14.

 

-            The banking sector has started exercising restraint while following prudent risk management norms when lending money to gems and jewellery sector. This follows the implementation of Basel III accord – a global voluntary regulatory standard on bank capital adequacy, stress testing and market liquidity.

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.61.93

UK Pound

1

Rs.96.37

Euro

1

Rs.76.10

 

INFORMATION DETAILS

 

Analysis Done by :

SUB

 

 

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%)

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.