MIRA INFORM REPORT

Report Date :

22.03.2014

IDENTIFICATION DETAILS

Name :	MORTIMER MANAGEMENT GROUP LIMITED
Registered Office :	Sherwood House, 7 Gregory Boulevard, Nottingham, NG7 6LB
Country :	United Kingdom
Financials (as on) :	31.08.2013
Date of Incorporation :	27.02.1997
Com. Reg. No.:	03325255
Legal Form :	Private limited with Share Capital
Line of Business :	Wholesale of Watches and Jewellery
No. of Employees :	205

RATING & COMMENTS

MIRA’s Rating :

Ba

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Status :	Satisfactory
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, 2013

Country Name	Previous Rating (30.06.2013)	Current Rating (30.09.2013)
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

REGISTERED NAME & COMPANY SUMMARY

Company Name	MORTIMER MANAGEMENT GROUP LIMITED	Company Number	03325255
Registered Address	SHERWOOD HOUSE 7 GREGORY BOULEVARD NOTTINGHAM NG7 6LB	Trading Address	The Old Chapel Chaworth Road Colwick Nottingham, Nottinghamshire NG4 2FZ
Website Address		http://www.chapelle.co.uk
Telephone Number		-
TPS		-

Incorporation Date	27/02/1997	Company Status	Active - Accounts Filed
Previous Name		Type	Private limited with Share Capital
Date of Change	-	Filing Date of Accounts	26/02/2014
		Share Capital	£50,000
SIC03	5147	Currency	GBP
SIC03 Description	Wholesale of other household goods
SIC07	46480
SIC07 Description	WHOLESALE OF WATCHES AND JEWELLERY
Principal Activity	A group engaged in wholesale and retail of jewellery and associated

DIRECTORS/MANAGEMENT

Total Current Directors	2
Total Current Secretaries	1
Total Previous Directors / Company Secretaries	2

Current Directors

Name	Paul Anthony Mortimer	Date of Birth	01/02/1950
Officers Title	Mr	Nationality	British
Present Appointments	14	Function	Director
Appointment Date	27/02/1997
Address	Launceston House, The Green, Farnsfield, Notts, NG22 8EY
Other Actions	View Director Report	View Consumer Report
Disqualified		Disqualified End Date
Disqualification Exception	No

Name	Margaret Ann Mortimer	Date of Birth	02/11/1950
Officers Title	Ms	Nationality	British
Present Appointments	7	Function	Director
Appointment Date	27/02/1997
Address	Launceston House, The Green, Farnsfield, Notts, NG22 8EY
Other Actions	View Director Report	View Consumer Report
Disqualified		Disqualified End Date
Disqualification Exception	No

Current Company Secretary

Name	Paul Anthony Mortimer	Date of Birth	01/02/1950
Officers Title	Mr	Nationality	British
Present Appointments	14	Function	Company Secretary
Appointment Date	27/02/1997
Address	Launceston House, The Green, Farnsfield, Notts, NG22 8EY

NEGATIVE INFORMATION

CCJ

Total Number of Exact CCJs -	0	Total Value of Exact CCJs -
Total Number of Possible CCJs -	0	Total Value of Possible CCJs -
Total Number of Satisfied CCJs -	0	Total Value of Satisfied CCJs -
Total Number of Writs -	-

Exact CCJ Details

There are no exact CCJ details

Possible CCJ Details

There are no possible CCJ details

Writ Details

There are no writ details

SHARE & SHARE CAPITAL INFORMATION

Top 20 Shareholders

Name	Currency	Share Count	Share Type	Nominal Value	% of Total Share Count
MRS MARGARET ANN MORTIMER	GBP	25,000	ORDINARY	1	50
MR PAUL ANTHONY MORTIMER	GBP	25,000	ORDINARY	1	50

PAYMENT INFORMATION

Payment Information Summary

Days Beyond Terms

Trend Indicator

                         Average Payment Experience  

8	15
Company DBT	UK Average DBT

Steady

Improving Worsening

Within Terms 91+ Days

GROUP STRUCTURE & AFFILIATED COMPANIES

Statistics

Group	4 companies
Linkages	0 companies
Countries	In 0 countries

Summary

Holding Company	MORTIMER MANAGEMENT GROUP LIMITED
Ownership Status	Ultimately Owned
Ultimate Holding Company	MORTIMER MANAGEMENT GROUP LIMITED

Group structure

Company Name	Registered Number	Latest Key Financials	Consol. Accounts	Turnover
MORTIMER MANAGEMENT GROU...	03325255	31.08.2013	Y	£13,263,181
VICTORIA HOUSE JEWELLE...	03305815	31.08.2013	N
THE JEWELLERY OUTLET L...	03626940	31.08.2013	N	£12,583,804
CHAPELLE LIMITED	02535283	31.08.2013	N

FINANCIAL INFORMATION

Key Financials

Year to Date	Turnover	Pre Tax Profit	Shareholder Funds	Employees
31/08/2013	£13,263,181	£736,296	£4,004,189	205
31/08/2012	£12,512,066	£575,760	£3,435,768	211
31/08/2011	£12,353,679	£389,674	£2,996,841	174

Profit & Loss

Date Of Accounts	31/08/13	(%)	31/08/12	(%)	31/08/11	(%)	31/08/10	(%)	31/08/09
Weeks	52	(%)	52	(%)	52	(%)	52	(%)	52
Currency	GBP	(%)	GBP	(%)	GBP	(%)	GBP	(%)	GBP
Consolidated A/cs	Y	(%)	Y	(%)	Y	(%)	Y	(%)	Y
Turnover	£13,263,181	6%	£12,512,066	1.3%	£12,353,679	-6.8%	£13,252,820	3.3%	£12,825,737
Export	-	-	-	-	-	-	-	-	-
Cost of Sales	£10,813,899	7.1%	£10,094,375	-0.4%	£10,132,025	-5.9%	£10,765,729	1.5%	£10,607,196
Gross Profit	£2,449,282	1.3%	£2,417,691	8.8%	£2,221,654	-10.7%	£2,487,091	12.1%	£2,218,541
Wages & Salaries	£3,098,662	0.5%	£3,084,558	-1.7%	£3,138,979	-1%	£3,169,157	5.9%	£2,993,007
Directors Emoluments	£241,907	-3%	£249,343	-1.2%	£252,273	0.9%	£249,905	82.3%	£137,070
Operating Profit	£788,536	28%	£616,121	34%	£459,756	-29.1%	£648,604	76.1%	£368,407
Depreciation	£211,570	-15%	£248,820	-12.3%	£283,810	-21.7%	£362,287	11.9%	£323,880
Audit Fees	£8,916	-28.7%	£12,500	-2.3%	£12,800	-	£12,800	29.6%	£9,875
Interest Payments	£52,240	29.4%	£40,361	-42.4%	£70,082	-23.2%	£91,239	87.1%	£48,757
Pre Tax Profit	£736,296	27.9%	£575,760	47.8%	£389,674	-30.6%	£561,756	75.7%	£319,650
Taxation	-£155,275	-13.5%	-£136,833	-60%	-£85,547	49.9%	-£170,811	-101.5%	-£84,755
Profit After Tax	£581,021	32.4%	£438,927	44.3%	£304,127	-22.2%	£390,945	66.4%	£234,895
Dividends Payable	£12,600	-	-	-	-	-	-	-	-
Retained Profit	£568,421	29.5%	£438,927	44.3%	£304,127	-22.2%	£390,945	66.4%	£234,895

Balance Sheet

Date Of Accounts	31/08/13	(%)	31/08/12	(%)	31/08/11	(%)	31/08/10	(%)	31/08/09
Tangible Assets	£347,315	-27.2%	£477,216	-29.7%	£678,879	-15.3%	£801,041	-2.1%	£818,179
Intangible Assets	0	-	0	-	0	-	0	-	0
Total Fixed Assets	£347,315	-27.2%	£477,216	-29.7%	£678,879	-15.3%	£801,041	-2.1%	£818,179
Stock	£5,331,779	5.9%	£5,035,921	-1.8%	£5,129,649	0.5%	£5,105,213	3.7%	£4,924,620
Trade Debtors	£42,123	121.2%	£19,044	-45.4%	£34,894	-16.5%	£41,777	100.6%	£20,831
Cash	£821,764	185.8%	£287,538	-28%	£399,494	-21.9%	£511,502	21.6%	£420,756
Other Debtors	£412,434	-10.5%	£460,719	33.5%	£345,171	-4.5%	£361,532	-27.4%	£497,900
Miscellaneous Current Assets	0	-	0	-	0	-	0	-	0
Total Current Assets	£6,608,100	13.9%	£5,803,222	-1.8%	£5,909,208	-1.8%	£6,020,024	2.7%	£5,864,107
Trade Creditors	£1,027,791	17.8%	£872,806	-29.2%	£1,232,436	-12.8%	£1,412,984	-15.4%	£1,670,452
Bank Loans & Overdrafts	£153,846	-	£153,846	-	£153,846	-	£153,846	100%	£76,923
Other Short Term Finance	£309,699	1.8%	£304,149	-18.9%	£374,821	-16.8%	£450,393	-5.5%	£476,624
Miscellaneous Current Liabilities	£1,002,630	21.8%	£823,229	-6.5%	£880,913	-1.6%	£895,366	22%	£733,867
Total Current Liabilities	£2,493,966	15.8%	£2,154,030	-18.5%	£2,642,016	-9.3%	£2,912,589	-1.5%	£2,957,866
Bank Loans & Overdrafts and LTL	£611,106	-27.6%	£844,486	-23.4%	£1,103,076	-19.5%	£1,369,608	-8.7%	£1,499,574
Other Long Term Finance	0	-	0	-100%	£2,083	-97.1%	£70,878	-52.6%	£149,460
Total Long Term Liabilities	£457,260	-33.8%	£690,640	-27.2%	£949,230	-21.9%	£1,215,762	-14.5%	£1,422,651

Capital & Reserves

Date Of Accounts	31/08/13	(%)	31/08/12	(%)	31/08/11	(%)	31/08/10	(%)	31/08/09
Called Up Share Capital	£50,000	-	£50,000	-	£50,000	-	£50,000	-	£50,000
P & L Account Reserve	£3,954,189	16.8%	£3,385,768	14.9%	£2,946,841	11.5%	£2,642,714	17.4%	£2,251,769
Revaluation Reserve	-	-	-	-	-	-	-	-	-
Sundry Reserves	-	-	-	-	-	-	-	-	-
Shareholder Funds	£4,004,189	16.5%	£3,435,768	14.6%	£2,996,841	11.3%	£2,692,714	17%	£2,301,769

Other Financial Items

Date Of Accounts	31/08/13	(%)	31/08/12	(%)	31/08/11	(%)	31/08/10	(%)	31/08/09
Net Worth	£4,004,189	16.5%	£3,435,768	14.6%	£2,996,841	11.3%	£2,692,714	17%	£2,301,769
Working Capital	£4,114,134	12.7%	£3,649,192	11.7%	£3,267,192	5.1%	£3,107,435	6.9%	£2,906,241
Total Assets	£6,955,415	10.7%	£6,280,438	-4.7%	£6,588,087	-3.4%	£6,821,065	2.1%	£6,682,286
Total Liabilities	£2,951,226	3.7%	£2,844,670	-20.8%	£3,591,246	-13%	£4,128,351	-5.8%	£4,380,517
Net Assets	£4,004,189	16.5%	£3,435,768	14.6%	£2,996,841	11.3%	£2,692,714	17%

Cash Flow

Date Of Accounts	31/08/13	(%)	31/08/12	(%)	31/08/11	(%)	31/08/10	(%)	31/08/09
Net Cashflow from Operations	£1,064,091	181.3%	£378,253	-39.7%	£627,733	-18%	£765,138	132%	£329,837
Net Cashflow before Financing	£769,689	272%	£206,885	-9.9%	£229,584	-5.2%	£242,213	351.8%	£53,605
Net Cashflow from Financing	-£235,463	26.2%	-£318,841	6.7%	-£341,592	-125.5%	-£151,467	-117.1%	£885,158
Increase in Cash	£534,226	577.2%	-£111,956	0%	-£112,008	-223.4%	£90,746	-90.3%	£938,763

Miscellaneous

Date Of Accounts	31/08/13	(%)	31/08/12	(%)	31/08/11	(%)	31/08/10	(%)	31/08/09
Contingent Liability	NO	-	NO	-	YES	-	YES	-	YES
Capital Employed	£4,461,449	8.1%	£4,126,408	4.6%	£3,946,071	1%	£3,908,476	4.9%	£3,724,420
Number of Employees	205	-2.8%	211	21.3%	174	3.6%	168	5%	160
Auditors	PAGE KIRK LLP
Auditor Comments	The audit report contains no adverse comments
Bankers	BARCLAYS BANK PLC
Bank Branch Code	20-63-25

Ratios

Date Of Accounts	31/08/13	31/08/12	31/08/11	31/08/10	31/08/09
Pre-tax profit margin %	5.55	4.60	3.15	4.24	2.49
Current ratio	2.65	2.69	2.24	2.07	1.98
Sales/Net Working Capital	3.22	3.43	3.78	4.26	4.41
Gearing %	15.30	24.60	36.80	50.90	65.10
Equity in %	57.60	54.70	45.50	39.50	34.40
Creditor Days	28.20	25.39	36.31	38.80	47.40
Debtor Days	1.15	0.55	1.02	1.14	0.59
Liquidity/Acid Test	0.51	0.35	0.29	0.31	0.31
Return On Capital Employed %	16.50	13.95	9.87	14.37	8.58
Return On Total Assets Employed %	10.58	9.16	5.91	8.23	4.78
Current Debt Ratio	0.62	0.62	0.88	1.08	1.28
Total Debt Ratio	0.73	0.82	1.19	1.53	1.90
Stock Turnover Ratio %	40.19	40.24	41.52	38.52	38.39
Return on Net Assets Employed %	18.38	16.75	13

FOREIGN EXCHANGE RATES

N/a

ADDITIONAL INFORMATION

Status History

No Status History found

Event History

Date	Description
19/03/2014	Annual Returns
06/03/2014	New Accounts Filed
06/03/2014	New Accounts Filed
22/04/2013	New Accounts Filed
22/04/2013	New Accounts Filed
01/04/2013	Annual Returns
28/04/2012	Annual Returns
04/02/2012	New Accounts Filed
01/04/2011	New Accounts Filed
01/04/2011	New Accounts Filed
14/03/2011	Annual Returns
21/04/2010	New Accounts Filed
21/04/2010	New Accounts Filed
25/03/2010	Annual Returns
21/06/2009	New Accounts Filed

Previous Company Names

No Previous Names found

NOTES & COMMENTS

Commentary

No exact match CCJs are recorded against the company.

Sales in the latest trading period increased 6% on the previous trading period.

Net Worth increased by 16.5% during the latest trading period.

A 10.7% growth in Total Assets occurred during the latest trading period.

Pre-tax profits increased by 27.9% compared to the previous trading period.

The company saw an increase in their Cash Balance of 185.8% during the latest trading period.

The audit report contains no adverse comments.

No recent changes in directorship are recorded.

The company is part of a group.

The company was established over 17 years ago.

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 8^th Century B.C.  India, in fact, remained undisputed leader till 18^th 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 30^th 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.61.05
UK Pound	1	Rs.100.81
Euro	1	Rs.84.18

INFORMATION DETAILS

Report Prepared by :

NNA

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%)

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