MIRA
INFORM REPORT
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Report Date : |
04.02.2014 |
IDENTIFICATION DETAILS
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Name : |
LOIS JEWELLERY LTD. |
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Registered Office : |
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Country : |
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Financials (as on) : |
31.05.2013 |
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Date of Incorporation : |
21.08.2002 |
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Com. Reg. No.: |
04516228 |
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Legal Form : |
Private Independent Company |
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Line of Business : |
· wholesaler of Jewellery Trader
of precious metal, primarily gold. |
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No. of Employees : |
10 |
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 : |
Satisfactory |
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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 – december 01, 2013
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Country Name |
Previous Rating (30.09.2013) |
Current Rating (01.12.2013) |
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United Kingdom |
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 |
United Kingdom ECONOMIC OVERVIEW
The UK, a
leading trading power and financial center, is the second largest economy in
Europe after Germany. 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 aimed 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 21% by 2014.
The Bank of England (BoE) implemented an asset purchase program of up to £375
billion (approximately $605 billion) as of December 2012. 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. GDP fell 0.1%, and the budget deficit remained
stubbornly high at 7.7% of GDP. Public debt continued to increase.
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Source : CIA |
Company name & address
Lois Jewellery Ltd.
Registered Address
41-42 Frederick Street
Hockley
Birmingham, B1 3HN
United Kingdom
Tel: 01212121715
Fax: 01212124544
Synthesis
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Employees: |
10 |
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Company Type: |
Private Independent |
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Quoted Status: |
Non-quoted Company |
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Incorporation
Date: |
21-Aug-2002 |
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Auditor: |
Michael Dufty Partnership Ltd. |
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Financial |
USD (Millions) |
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Fiscal Year End: |
31-May-2013 |
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Reporting
Currency: |
British Pound Sterling |
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Annual Sales: |
NA |
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Total Assets: |
4.4 |
Business Description
Established in 1985 Lois Jewellery Ltd is one leading buyers of precious metal in the country for over 29 years. Lois is based in the Heart of Birminghams Jewellery Quarter with Secure Car parking. We buy all forms of bullion with immediate turnaround and payments.
Industry
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Industry |
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ANZSIC 2006: |
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ISIC Rev 4: |
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NACE Rev 2: |
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NAICS 2012: |
423990 -
Other Miscellaneous Durable Goods Merchant Wholesalers |
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UK SIC 2007: |
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US SIC 1987: |
Key Executives
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Financial Summary
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1 - Profit &
Loss Item Exchange Rate: USD 1 = GBP 0.6374732
2 - Balance Sheet Item Exchange Rate:
USD 1 = GBP 0.6575888
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Executive report
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Director |
Director/Board Member |
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Director |
Director/Board Member |
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Director |
Director/Board Member |
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Executives |
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Director, Secretary |
Company Secretary |
. |
Directors and Shareholders Report
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Main Office Address: |
Tel: 01212121715 |
Annual Return Date: 21 Aug 2013 |
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Individual Directors |
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Name |
Status |
DOB |
Filed Address |
Appointment Date |
Resignation Date |
Summary of Directorships |
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Current |
15 Jun 1957 |
19 Main Street, Hemington, |
21 Aug 2002 |
NA |
Current:1 |
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Current |
17 Jan 1974 |
5 Glenorchy Court, Oakwood, |
21 Aug 2002 |
NA |
Current:1 |
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Previous |
06 Nov 1952 |
Craigmore, 14 Lime Avenue Ripley, |
21 Aug 2002 |
31 Mar 2008 |
Current:0 |
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Corporate Directors |
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There are no corporate directors for this company. |
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Individual Secretaries |
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Name |
Status |
DOB |
Filed Address |
Appointment Date |
Resignation Date |
Summary of Directorships |
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Current |
NA |
41-42 Frederick Street, Hockley, |
21 Aug 2002 |
NA |
Current:1 |
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Corporate Secretaries |
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There are no corporate secretaries for this company. |
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Individual Shareholders |
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Name |
Share Details |
Share Type |
# of Shares |
Share Price (GBP) |
Share Value (GBP) |
% of Total Shares |
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Daniel Francis Evans |
50 Ordinary GBP 1.00 |
Ordinary |
50 |
1.00 |
50.00 |
5.00 |
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Eleanor Lois White |
50 Ordinary GBP 1.00 |
Ordinary |
50 |
1.00 |
50.00 |
5.00 |
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Nigel James Blackburn |
900 Ordinary GBP 1.00 |
Ordinary |
900 |
1.00 |
900.00 |
90.00 |
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Corporate Shareholders |
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There are no corporate shareholders for this company. |
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Annual Profit & Loss
Financials in: USD (mil)
Except for share items (millions) and per share items (actual units)
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31-May-2013 |
31-May-2012 |
19-Mar-2012 |
31-Mar-2011 |
31-Mar-2010 |
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Period Length |
52 Weeks |
10 Weeks |
51 Weeks |
52 Weeks |
52 Weeks |
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Filed Currency |
GBP |
GBP |
GBP |
GBP |
GBP |
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Exchange Rate
(Period Average) |
0.637473 |
0.629159 |
0.626413 |
0.643394 |
0.627794 |
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Consolidated |
No |
No |
No |
No |
No |
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Depreciation |
0.0 |
0.0 |
0.1 |
0.1 |
0.1 |
Annual Balance Sheet
Financials in: USD (mil)
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31-May-2013 |
31-May-2012 |
19-Mar-2012 |
31-Mar-2011 |
31-Mar-2010 |
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Filed Currency |
GBP |
GBP |
GBP |
GBP |
GBP |
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Exchange Rate |
0.657589 |
0.644333 |
0.631214 |
0.62385 |
0.659239 |
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Consolidated |
No |
No |
No |
No |
No |
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Total Tangible Fixed Assets |
0.2 |
0.3 |
0.3 |
0.4 |
0.2 |
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Intangible Assets |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
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Investments |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
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Total Fixed Assets |
0.3 |
0.3 |
0.3 |
0.4 |
0.3 |
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Total Stocks Work In Progress |
3.4 |
3.0 |
3.5 |
4.0 |
2.8 |
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Director Loans |
0.0 |
0.0 |
- |
- |
- |
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Other Debtors |
0.4 |
0.2 |
- |
- |
- |
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Total Debtors |
0.4 |
0.2 |
0.2 |
0.5 |
0.6 |
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Cash and Equivalents |
0.3 |
0.3 |
1.0 |
0.7 |
0.1 |
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Other Current Assets |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
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Total Current Assets |
4.1 |
3.6 |
4.8 |
5.2 |
3.6 |
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Total Assets |
4.4 |
3.9 |
5.1 |
5.6 |
3.8 |
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Bank Overdraft |
- |
- |
1.2 |
- |
0.3 |
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Hire Purchase (Current Liability) |
- |
- |
0.0 |
- |
- |
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Finance Lease (Current Liability) |
- |
- |
0.0 |
- |
- |
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Total Finance Lease/Hire Purchase (Current Liability) |
- |
- |
0.0 |
- |
- |
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Other Current Liabilities |
1.9 |
1.7 |
1.8 |
3.6 |
1.9 |
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Total Current Liabilities |
1.9 |
1.7 |
3.0 |
3.6 |
2.2 |
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Group Loans (Long Term Liability) |
- |
0.0 |
0.0 |
- |
0.0 |
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Director Loans (Long Term Liability) |
- |
0.0 |
0.0 |
- |
0.0 |
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Hire Purchase (Long Term Liability) |
- |
0.0 |
0.0 |
- |
0.0 |
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Leasing (Long Term Liability) |
- |
0.0 |
0.0 |
- |
0.0 |
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Total Hire Purchase Loans (Long Term Liability) |
- |
0.0 |
0.0 |
- |
0.0 |
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Other Long Term Loans |
- |
0.0 |
0.0 |
- |
0.0 |
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Accruals/Deferred Income (Long Term Liability) |
- |
0.0 |
0.0 |
- |
0.0 |
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Other Long Term Liabilities |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
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Total Long Term Liabilities |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
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Deferred Taxation |
0.0 |
0.0 |
0.0 |
- |
- |
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Other Provisions |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
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Total Provisions |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
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Issued Capital |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
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Share Premium Accounts |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
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Revaluation Reserve |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
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Retained Earnings |
2.5 |
2.1 |
2.1 |
2.0 |
1.6 |
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Other Reserves |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
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Minority Interests (Balance Sheet) |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
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Total Shareholders Funds |
2.5 |
2.1 |
2.1 |
2.0 |
1.6 |
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Net Worth |
2.4 |
2.1 |
2.0 |
1.9 |
1.6 |
Annual Cash Flows
Financials in: USD (mil)
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31-May-2013 |
31-May-2012 |
19-Mar-2012 |
31-Mar-2011 |
31-Mar-2010 |
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Period Length |
52 Weeks |
10 Weeks |
51 Weeks |
52 Weeks |
52 Weeks |
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Filed Currency |
GBP |
GBP |
GBP |
GBP |
GBP |
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Exchange Rate
(Period Average) |
0.637473 |
0.629159 |
0.626413 |
0.643394 |
0.627794 |
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Consolidated |
No |
No |
No |
No |
No |
Annual Ratios
Financials in: USD (mil)
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|
31-May-2013 |
31-May-2012 |
19-Mar-2012 |
31-Mar-2011 |
31-Mar-2010 |
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Period Length |
52 Weeks |
10 Weeks |
51 Weeks |
52 Weeks |
52 Weeks |
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Filed Currency |
GBP |
GBP |
GBP |
GBP |
GBP |
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Exchange Rate |
0.657589 |
0.644333 |
0.631214 |
0.62385 |
0.659239 |
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Consolidated |
No |
No |
No |
No |
No |
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Current Ratio |
2.19 |
2.08 |
1.60 |
1.44 |
1.62 |
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Liquidity Ratio |
0.36 |
0.30 |
0.42 |
0.33 |
0.34 |
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Borrowing Ratio |
- |
- |
57.93% |
- |
16.79% |
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Equity Gearing |
56.19% |
54.66% |
40.43% |
34.85% |
41.82% |
DIAMOND INDUSTRY – INDIA
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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.
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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.
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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.
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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.
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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.
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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.
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Excerpts from Times of India dated 30th October 2010 is as
under –
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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.
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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
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Currency |
Unit
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Indian Rupees |
|
US Dollar |
1 |
Rs.62.69 |
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UK Pound |
1 |
Rs.102.97 |
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Euro |
1 |
Rs.84.58 |
INFORMATION DETAILS
|
Report Prepared
by : |
MNL |
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest capability
for timely payment of interest and principal sums |
Unlimited |
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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 |
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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 |
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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 |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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-- |
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.