EID LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2023
Company registration number 03491832 (England and Wales)
EID LIMITED
COMPANY INFORMATION
Director
M. B. Lee
Secretary
S. A. Hinds
Company number
03491832
Registered office
Elm Park House
Elm Park Court
Pinner
Middlesex
HA5 3NN
Auditor
Sears Morgan Accountancy Limited
Elm Park House
Elm Park Court
Pinner
Middlesex
HA5 3NN
Business address
12 St Cross Street
London
EC1N 8UB
EID LIMITED
CONTENTS
Page
Strategic report
1
Director's report
2 - 3
Independent auditor's report
4 - 6
Profit and loss account
7
Group statement of comprehensive income
8
Group balance sheet
9
Company balance sheet
10
Group statement of changes in equity
11
Company statement of changes in equity
12
Group statement of cash flows
13
Company statement of cash flows
14
Notes to the financial statements
15 - 32
EID LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 APRIL 2023
- 1 -

The director presents the strategic report for the year ended 30 April 2023.

Review of the business

The company and its sole subsidiary EID Super Abrasives Ireland Limited is a wholly-owned subsidiary of Edel & Sons Ltd (incorporated in Israel).

Following the continued increase in group's turnover by 4.91% to £11,756,128 (2022: £11,205,292) this is the first year the company has qualified as medium in size, and therefore required an audit. As accounts are not consolidated by the ultimate parent company, Edel & Sons Ltd, as head of the next sub-group below, group accounts have been required to be prepared for the first time.

This being the first full year of trading since the Covid-19 pandemic not to be affected by any lockdowns or impacted by restrictions thereon, the group recorded an operating profit before tax of £281,978 (2022: £106,530) with total net assets at the year end totalling £4,099,771 (2022: £4,015,767). The director considers the results for the year and the position at the balance sheet date to be satisfactory.

Principal risks and uncertainties

The company is subject to principle risk and uncertainty from external factors including currency fluctuation, world demand and supply of diamonds and industrial products which use diamonds. The director mitigates these risks by continually reviewing currency markets, adjusting selling prices and buying accordingly, and keeping up to date with patterns in the world diamond trade.

Development and performance

The company continues to develop strong relationships with its key customers which has resulted in increased sales during the year as the world’s economies continue to recover from the pandemic. The company has also developed a strategy for overcoming the impact of Brexit which has allowed it to continue trading successfully with its European customers.

Key performance indicators

The key performance indicators used by the director in assessing the performance of the company is turnover, gross profit margins, the control of overheads and cashflows which all have remained relatively stable year on year. These are reviewed on a regular basis by the director.

On behalf of the board

M. B. Lee
Director
24 February 2025
EID LIMITED
DIRECTOR'S REPORT
FOR THE YEAR ENDED 30 APRIL 2023
- 2 -

The director presents his annual report and financial statements for the year ended 30 April 2023.

Principal activities

The principal activity of the company and group continued to be that of dealers in industrial diamonds.

Results and dividends

The results for the year are set out on page 7.

Ordinary dividends were paid amounting to £124,000. The director does not recommend payment of a further dividend.

Director

The director who held office during the year and up to the date of signature of the financial statements was as follows:

M. B. Lee
Financial instruments
Liquidity risk

Management continually monitor and manage its working capital in a continuous process to maintain and improve liquidity, assessing and evaluating the wholesale market prices when necessary in determining when to purchase stock and actively managing trade debtors. Managements' aim is to further maintain its control procedures and mechanisms for managing this risk.

Foreign currency risk

The group is exposed to foreign exchange rate movements on financial commitments denominated in currencies other than US dollars, the largest being related to staffing costs and other administration costs which are denominated in pounds Sterling. The group does not enter into any financial derivative contracts or trade financial instruments for speculative purposes.

Credit risk

The group's principal financial assets are trade and other receivables. The group's credit risk is primarily attributable to its trade receivables which are predominantly with its main core customers and small subsidiary. The directors have mitigated this by their long term relationships built up over many years.

Market risk

The principal risk facing the group is fluctuations in the industrial wholesale diamond market as well as the underlying price of the diamonds, which is driven by both demand and supply factors.

Research and development

The group does not generally undertake any research and development expenditure, and none has occurred in this or prior financial year.

Future developments

Details of future developments can be found in the strategic report.

Auditor

Sears Morgan Accountancy Limited were appointed as the group's first auditor and in accordance with section 382 (1) of the Companies Act 2014, continue in office as auditor of the group.

EID LIMITED
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
- 3 -
Statement of director's responsibilities

The director is responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the director is required to:

 

 

The director is responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and company and enable them to ensure that the financial statements comply with the Companies Act 2006. He is also responsible for safeguarding the assets of the group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.

Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

On behalf of the board
M. B. Lee
Director
24 February 2025
EID LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF EID LIMITED
- 4 -

Qualified opinion based on limitation in audit scope on financial statements

We have audited the financial statements of EID Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 April 2023 which comprise the group profit and loss account, the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows, the company statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, except for the effects of the matter described in the basis for qualified opinion paragraph, the financial statements:

Basis for qualified opinion

Due to our appointment as auditor after the 2022 year-end inventory count, we were unable to observe the physical count of non-consignment stock at the beginning of the period and we were unable to obtain alternative sufficient appropriate audit evidence to satisfy ourselves. This is a material component of the opening balance at a valuation of £1,508,822.

Whilst we attended a physical stock count for the 2023 year-end and verified a sample of non-consignment stock items to stock take counting sheets, at the time of concluding our audit the detailed stock take counting sheets used to formulate the annual summary report, which is grouped per class of stock, had been misplaced and were not available to us. Due to the nature of the clients business, and that only an annual stock take is performed, we were therefore unable to obtain alternative sufficient appropriate audit evidence to satisfy ourselves that the sample of physical stock verified at the count had been appropriately carried to the annual summary report in order to verify the stock quantities used in the non-consignment stock valuation, which are included in the balance sheet at £1,653,208.

Consequently we were therefore unable to determine if any adjustment was required to the opening and closing non-consignment stock figures. In addition, were any adjustment to the stock balance to we required, the strategic report would also need to be amended.

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and parent company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

Our responsibilities and the responsibilities of the director with respect to going concern are described in the relevant sections of this report.

EID LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF EID LIMITED
- 5 -

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The director is responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

As described in the basis for qualified opinion section of our report, we were unable to satisfy ourselves concerning the stock quantities of £1,653,208 held at 30 April 2023. We have concluded that where the other information refers to the inventory balance or related balances such as cost of sales, it may be materially misstated for the same reason.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

Matters on which we are required to report by exception

In respect solely of the limitation on the scope of our audit work relating to stock, described above:

In the light of the knowledge and understanding of the group and the parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the director's report.

 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of director

As explained more fully in the director's responsibilities statement, the director is responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the director determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the director is responsible for assessing the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the director either intends to liquidate the parent company or to cease operations, or has no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

EID LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF EID LIMITED
- 6 -
The extent to which the audit was considered capable of detecting irregularities, including fraud

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

Audit response to risk identified

In response to the risk of irregularities, including fraud, and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Other matters which we are required to address

The financial statements for year ended 30 April 2022 were not subject to audit as both the group and the parent company qualified as small for that financial year, therefore the comparatives figures were not subject to audit.

N. Kerr FCCA (Senior Statutory Auditor)
For and on behalf of Sears Morgan Accountancy Limited
24 February 2025
Chartered Certified Accountants
Statutory Auditor
Elm Park House
Elm Park Court
Pinner
Middlesex
HA5 3NN
EID LIMITED
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 30 APRIL 2023
- 7 -
2023
2022
Notes
£
£
Turnover
3
11,756,127
11,205,292
Cost of sales
(9,655,196)
(9,214,213)
Gross profit
2,100,931
1,991,079
Distribution costs
(15,426)
(8,925)
Administrative expenses
(1,807,641)
(1,816,502)
Other operating income
-
7,185
Operating profit
4
277,864
172,837
Interest receivable and similar income
8
19,709
7,773
Interest payable and similar expenses
9
(22,900)
(20,007)
Amounts written off investments
10
7,304
(54,073)
Profit before taxation
281,977
106,530
Tax on profit
11
(70,123)
(29,820)
Profit for the financial year
26
211,854
76,710
Profit for the financial year is all attributable to the owner of the parent company.

The profit and loss account has been prepared on the basis that all operations are continuing operations.

EID LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 APRIL 2023
- 8 -
2023
2022
£
£
Profit for the year
211,854
76,710
Other comprehensive income
Currency translation (loss)/gain arising in the year
(3,850)
4,721
Total comprehensive income for the year
208,004
81,431
Total comprehensive income for the year is all attributable to the owners of the parent company.
EID LIMITED
GROUP BALANCE SHEET
AS AT 30 APRIL 2023
30 April 2023
- 9 -
2023
2022
Notes
£
£
£
£
Fixed assets
Goodwill
13
4,500
6,000
Tangible assets
14
22,760
23,072
27,260
29,072
Current assets
Stocks
17
3,386,393
3,435,474
Debtors
18
4,010,552
4,036,832
Investments
19
393,798
387,783
Cash at bank and in hand
449,512
540,907
8,240,255
8,400,996
Creditors: amounts falling due within one year
20
(4,140,793)
(3,844,750)
Net current assets
4,099,462
4,556,246
Total assets less current liabilities
4,126,722
4,585,318
Creditors: amounts falling due after more than one year
21
(21,667)
(564,909)
Provisions for liabilities
Deferred tax liability
23
5,284
4,642
(5,284)
(4,642)
Net assets
4,099,771
4,015,767
Capital and reserves
Called up share capital
25
2,614,000
2,614,000
Other reserves
26
987
4,837
Profit and loss reserves
26
1,484,784
1,396,930
Total equity
4,099,771
4,015,767

These financial statements have been prepared in accordance with the provisions relating to medium-sized groups.

The financial statements were approved and signed by the director and authorised for issue on 24 February 2025
24 February 2025
M. B. Lee
Director
Company registration number 03491832 (England and Wales)
EID LIMITED
COMPANY BALANCE SHEET
AS AT 30 APRIL 2023
30 April 2023
- 10 -
2023
2022
Notes
£
£
£
£
Fixed assets
Goodwill
13
4,500
6,000
Tangible assets
14
22,526
22,799
Investments
15
1
1
27,027
28,800
Current assets
Stocks
17
3,157,464
3,263,993
Debtors
18
4,783,055
4,478,735
Investments
19
393,798
387,783
Cash at bank and in hand
402,981
526,288
8,737,298
8,656,799
Creditors: amounts falling due within one year
20
(4,592,464)
(4,114,050)
Net current assets
4,144,834
4,542,749
Total assets less current liabilities
4,171,861
4,571,549
Creditors: amounts falling due after more than one year
21
(21,667)
(564,909)
Provisions for liabilities
Deferred tax liability
23
5,284
4,642
(5,284)
(4,642)
Net assets
4,144,910
4,001,998
Capital and reserves
Called up share capital
25
2,614,000
2,614,000
Profit and loss reserves
26
1,530,910
1,387,998
Total equity
4,144,910
4,001,998

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was 266,913 (2022 - 38,678 profit).

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.true

The financial statements were approved and signed by the director and authorised for issue on 24 February 2025
24 February 2025
M. B. Lee
Director
Company registration number 03491832 (England and Wales)
EID LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 APRIL 2023
- 11 -
Share capital
Currency translation reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 May 2021
2,614,000
116
1,320,220
3,934,336
Year ended 30 April 2022:
Profit for the year
-
-
76,710
76,710
Other comprehensive income:
Currency translation differences
-
4,721
-
0
4,721
Total comprehensive income
-
4,721
76,710
81,431
Balance at 30 April 2022
2,614,000
4,837
1,396,930
4,015,767
Year ended 30 April 2023:
Profit for the year
-
-
211,854
211,854
Other comprehensive income:
Currency translation differences
-
(3,850)
-
0
(3,850)
Total comprehensive income
-
(3,850)
211,854
208,004
Dividends
12
-
-
(124,000)
(124,000)
Balance at 30 April 2023
2,614,000
987
1,484,784
4,099,771
EID LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 APRIL 2023
- 12 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 May 2021
2,614,000
1,349,320
3,963,320
Year ended 30 April 2022:
Profit and total comprehensive income for the year
-
38,678
38,678
Balance at 30 April 2022
2,614,000
1,387,998
4,001,998
Year ended 30 April 2023:
Profit and total comprehensive income
-
266,912
266,912
Dividends
12
-
(124,000)
(124,000)
Balance at 30 April 2023
2,614,000
1,530,910
4,144,910
EID LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 APRIL 2023
- 13 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
30
519,908
(15,427)
Interest paid
(22,900)
(20,007)
Income taxes paid
(62,150)
(23,017)
Net cash inflow/(outflow) from operating activities
434,858
(58,451)
Investing activities
Purchase of tangible fixed assets
(6,394)
(2,705)
Proceeds from disposal of investments
1,289
(265,023)
Repayment of loans
(4,755)
(5,862)
Interest received
19,505
7,773
Dividends received
204
-
0
Net cash generated from/(used in) investing activities
9,849
(265,817)
Financing activities
Proceeds from borrowings
-
741,817
Repayment of borrowings
(398,252)
(7,697)
Repayment of bank loans
(10,000)
(8,333)
Dividends paid to equity shareholders
(124,000)
-
0
Net cash (used in)/generated from financing activities
(532,252)
725,787
Net (decrease)/increase in cash and cash equivalents
(87,545)
401,519
Cash and cash equivalents at beginning of year
540,907
134,667
Effect of foreign exchange rates
(3,850)
4,721
Cash and cash equivalents at end of year
449,512
540,907
EID LIMITED
COMPANY STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 APRIL 2023
- 14 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
31
469,463
(7,799)
Interest paid
(22,900)
(20,007)
Income taxes paid
(47,467)
(23,012)
Net cash inflow/(outflow) from operating activities
399,096
(50,818)
Investing activities
Purchase of tangible fixed assets
(6,394)
(2,525)
Proceeds from disposal of investments
1,289
(265,023)
Repayment of loans
(4,755)
(5,862)
Interest received
19,505
7,773
Dividends received
204
-
0
Net cash generated from/(used in) investing activities
9,849
(265,637)
Financing activities
Proceeds from borrowings
-
0
741,817
Repayment of borrowings
(398,252)
(7,697)
Repayment of bank loans
(10,000)
(8,333)
Dividends paid to equity shareholders
(124,000)
-
Net cash (used in)/generated from financing activities
(532,252)
725,787
Net (decrease)/increase in cash and cash equivalents
(123,307)
409,332
Cash and cash equivalents at beginning of year
526,288
116,956
Cash and cash equivalents at end of year
402,981
526,288
EID LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2023
- 15 -
1
Accounting policies
Company information

EID Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Elm Park House, Elm Park Court, Pinner, Middlesex, HA5 3NN. The principal place of business is 12 St Cross Street, London, EC1N 8UB.

 

The group consists of EID Limited and its sole subsidiary EID Super Abrasives Ireland Limited, a company domiciled and registered in Ireland. Company registration number 683614.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The functional currency of the group is US dollars. The financial statements are prepared in sterling, which is the presentational currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, [modified to include the revaluation of certain financial instruments at fair value]. The principal accounting policies adopted are set out below.

1.2
Business combinations

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

 

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company EID Limited and its sole subsidiary EID Super Abrasives Ireland Limited. EID Limited has no other entities, joint ventures, associates or interests which it controls.

 

Adjustments have been made to the financial statements of EID Super Abrasives Ireland Limited which prepares its financial statements to 31 December and reports in Euros to bring the reporting period and accounting policies into line with those used by its immediate parent company EID Limited.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

EID LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
1
Accounting policies
(Continued)
- 16 -
1.4
Going concern

At the time of approving the financial statements, the director has a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the director continues to adopt the going concern basis of accounting in preparing the financial statements.

1.5
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

 

The primary revenue sources for the company is from the sale of goods which is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (on dispatch of the goods, except for inventory dispatched on consignment), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

 

Consignment inventory is invoiced on dispatch of goods. Sales revenue is not recognised until the consignment stock holder notifies the company the consignment stock has been accepted, used in production or sold and EID Limited has no continuing involvement or control over the goods.

Interest income is recognised when the right to receive payment is established.

1.6
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 20 years.

1.7
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Plant and equipment
25% per annum on a reducing balance basis.
Fixtures and fittings
25% per annum on a reducing balance basis.
Computers
12.5% per annum on a straight line basis.

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.

1.8
Fixed asset investments

Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

EID LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
1
Accounting policies
(Continued)
- 17 -

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

1.9
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.10
Stocks

Inventories are stated at an estimated weighted average value based on current market rates less costs to complete and sell, being its net realisable value. Cost represents materials, duty and carriage.

Consignment stock which is held by third parties is valued at invoice cost less estimated gross profit margin.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss, cost of sales.

1.11
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

EID LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
1
Accounting policies
(Continued)
- 18 -
1.12
Financial instruments

The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.

EID LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
1
Accounting policies
(Continued)
- 19 -
Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

1.13
Equity instruments

Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.

1.14
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

EID LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
1
Accounting policies
(Continued)
- 20 -
Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.15
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.16
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.17
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

2
Judgements and key sources of estimation uncertainty

In the application of the group’s accounting policies, the director is required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

EID LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
2
Judgements and key sources of estimation uncertainty
(Continued)
- 21 -
Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Stock valuation

Annually stock is counted, classified into product lines and valued. When assessing the value of each product line different mesh sizes for grit and powders or carats for stones may have different prices which are aggregated together. In determining the value of the product lines, the director will use his knowledge of current market rates at which the company could purchase them on an open market basis or sell them less any expected gross profit margin and applies this as the cost value, using an average price that reflects the mesh sizes ratio per product line.

 

As noted in the accounting policy, consignment inventory held by third parties is calculated based on the sales price less expected gross profit margin. Where the director considers there to be no market for a particular product on consignment due to the uniqueness of the stone or type of grit and any reprocessing costs are uneconomic, the director will impair the value to £nil at which they are held.

 

The value of stock is converted from US dollars to £ sterling based on the average of the last 5 months Bank of England spot rate for each month end which represents the historic average stock turnover days.

 

The carrying amount of stock at the year end totalled £3,386,393 (2022: £3,435,474).

3
Turnover and other revenue

An analysis of the group's turnover is as follows:

2023
2022
£
£
Turnover analysed by geographical market
UK
1,433,080
1,282,318
Europe
4,354,272
3,607,340
Americas
2,840,173
3,494,221
Asia
1,397,662
1,191,027
Middle East
1,709,150
1,617,748
Other
21,790
12,638
11,756,127
11,205,292
2023
2022
£
£
Other revenue
Interest income
19,505
7,773
Dividends received
204
-
EID LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
- 22 -
4
Operating profit
2023
2022
£
£
Operating profit for the year is stated after charging:
Exchange losses
40,979
54,263
Depreciation of owned tangible fixed assets
6,706
7,638
Amortisation of intangible assets
1,500
1,500
5
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
25,000
-
6
Employees

The average monthly number of persons (including directors) employed by the group and company during the year was:

Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
Office and management
12
11
11
10

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
912,648
833,043
898,019
820,495
Social security costs
117,465
97,369
116,139
96,016
Pension costs
32,103
30,164
32,103
30,164
1,062,216
960,576
1,046,261
946,675
7
Director's remuneration
2023
2022
£
£
Remuneration for qualifying services
129,939
120,000
Company pension contributions to defined contribution schemes
6,000
6,000
135,939
126,000
EID LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
7
Director's remuneration
(Continued)
- 23 -

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 1 (2022 - 1).

8
Interest receivable and similar income
2023
2022
£
£
Interest income
Other interest income
19,505
7,773
Other income from investments
Dividends received
204
-
0
Total income
19,709
7,773
9
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
925
955
Other interest on financial liabilities
21,607
17,872
22,532
18,827
Other finance costs:
Other interest
368
1,180
Total finance costs
22,900
20,007
10
Amounts written off investments
2023
2022
£
£
Other gains and losses
7,304
(54,073)
11
Taxation
2023
2022
£
£
Current tax
Corporation tax on profits for the current period
69,951
30,855
Adjustments in respect of prior periods
(470)
-
0
Total current tax
69,481
30,855
Deferred tax
Origination and reversal of timing differences
642
(1,035)
Total tax charge
70,123
29,820
EID LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
11
Taxation
(Continued)
- 24 -

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2023
2022
£
£
Profit before taxation
281,977
106,530
Expected tax charge based on the standard rate of corporation tax of 19.00% (2022: 19.00%)
53,576
20,241
Tax effect of expenses that are not deductible in determining taxable profit
6,288
18,952
Tax effect of income not taxable in determining taxable profit
(38)
-
0
Tax effect of utilisation of tax losses not previously recognised
-
0
(3,721)
Unutilised tax losses carried forward
4,183
-
0
Effect of change in corporation tax rate
4,189
(2,878)
Effect of revaluations of investments
(1,388)
-
0
Accelerated capital allowances
(1,562)
(695)
Deferred tax
642
(1,035)
Relief from tax for start up companies
-
0
(1,354)
Consignment stock adjustment on consolidation
4,946
-
0
Foreign exchange adjustment on inter-company balances on consolidation
(713)
310
Taxation charge
70,123
29,820

In the Finance Bill 2021 it was announced that there will be an increase in UK Corporation Tax to 25% effective from 1 April 2023. The effect of this is not expected to have a material impact on the deferred tax of the company.

12
Dividends
2023
2022
Recognised as distributions to equity holders:
£
£
Interim paid
124,000
-
13
Intangible fixed assets
Group
Goodwill
£
Cost
At 1 May 2022 and 30 April 2023
30,000
Amortisation and impairment
At 1 May 2022
24,000
Amortisation charged for the year
1,500
At 30 April 2023
25,500
EID LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
13
Intangible fixed assets
(Continued)
- 25 -
Carrying amount
At 30 April 2023
4,500
At 30 April 2022
6,000
Company
Goodwill
£
Cost
At 1 May 2022 and 30 April 2023
30,000
Amortisation and impairment
At 1 May 2022
24,000
Amortisation charged for the year
1,500
At 30 April 2023
25,500
Carrying amount
At 30 April 2023
4,500
At 30 April 2022
6,000

The goodwill arose on the acquisition of an unincorporated business in year ended 30 April 2006. On transition to FRS102 the company took the exemption not to restate the business combination or amend the original amortisation period of 20 years.

14
Tangible fixed assets
Group
Plant and equipment
Fixtures and fittings
Computers
Total
£
£
£
£
Cost
At 1 May 2022
164,088
132,457
311
296,856
Additions
6,394
-
0
-
0
6,394
At 30 April 2023
170,482
132,457
311
303,250
Depreciation and impairment
At 1 May 2022
143,067
130,679
38
273,784
Depreciation charged in the year
6,223
444
39
6,706
At 30 April 2023
149,290
131,123
77
280,490
Carrying amount
At 30 April 2023
21,192
1,334
234
22,760
At 30 April 2022
21,021
1,778
273
23,072
EID LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
14
Tangible fixed assets
(Continued)
- 26 -
Company
Plant and equipment
Fixtures and fittings
Total
£
£
£
Cost
At 1 May 2022
164,088
132,457
296,545
Additions
6,394
-
0
6,394
At 30 April 2023
170,482
132,457
302,939
Depreciation and impairment
At 1 May 2022
143,067
130,679
273,746
Depreciation charged in the year
6,223
444
6,667
At 30 April 2023
149,290
131,123
280,413
Carrying amount
At 30 April 2023
21,192
1,334
22,526
At 30 April 2022
21,021
1,778
22,799
15
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
16
-
0
-
0
1
1
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 May 2022 and 30 April 2023
1
Carrying amount
At 30 April 2023
1
At 30 April 2022
1
16
Subsidiaries

Details of the company's subsidiaries which are held above at cost at 30 April 2023 are as follows:

Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
EID Super Abrasives Ireland Limited
8-34 Percy Place, Dublin 4, Eire
Sale of industrial diamonds
Ordinary
100.00
EID LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
- 27 -
17
Stocks
Group
Company
2023
2022
2023
2022
£
£
£
£
Finished goods and goods for resale
3,386,393
3,435,474
3,157,464
3,263,993

Included within the above figure is consignment stock held by the company's customers at customers' premises totalling £1,733,186 (company: £1,504,257) ((2022: £1,926,652) (company: £1,755,171)).

18
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
3,834,464
3,725,712
4,614,700
4,151,742
Corporation tax recoverable
14,698
-
0
-
0
-
0
Amounts owed by group undertakings
-
-
7,739
15,873
Other debtors
129,744
283,568
128,970
283,568
Prepayments and accrued income
31,646
27,552
31,646
27,552
4,010,552
4,036,832
4,783,055
4,478,735
19
Current asset investments
Group
Company
2023
2022
2023
2022
£
£
£
£
Listed investments
393,798
387,783
393,798
387,783

Listed investments comprise various bonds and shares in traded companies on recognised world-wide stock markets. These are held through an independent private banking group. At each year end the portfolio is revalued based on market rates prevalent on the day. All income and changes in market values are recognised through the profit and loss account.

EID LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
- 28 -
20
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans
22
10,000
10,000
10,000
10,000
Other borrowings
22
759,620
624,630
759,620
624,630
Trade creditors
3,142,026
2,794,053
3,599,070
3,066,852
Corporation tax payable
70,456
48,427
70,456
47,972
Other taxation and social security
101,772
80,311
101,242
79,365
Other creditors
4,894
261,133
4,894
261,133
Accruals and deferred income
52,025
26,196
47,182
24,098
4,140,793
3,844,750
4,592,464
4,114,050
21
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
22
21,667
31,667
21,667
31,667
Other borrowings
22
-
0
533,242
-
0
533,242
21,667
564,909
21,667
564,909
22
Loans and overdrafts
Group
Company
2023
2022
2023
2022
£
£
£
£
Bank loans
31,667
41,667
31,667
41,667
Other loans
759,620
1,157,872
759,620
1,157,872
791,287
1,199,539
791,287
1,199,539
Payable within one year
769,620
634,630
769,620
634,630
Payable after one year
21,667
564,909
21,667
564,909
EID LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
22
Loans and overdrafts
(Continued)
- 29 -

Bank borrowings are secured by a fixed and floating charge over the company's assets.

 

The bank loan is repayable in monthly instalments and carries an effective fixed rate of 2.5% per annum. It is due to be fully repaid in June 2026.

 

Other loans are unsecured and domiciled in US dollars.

 

One of the other loans totalling £40,562 has no set repayment date, deemed repayable on demand and is interest free. The remaining loans carry an effective interest rate of 3.5% per annum and are repayable within 12 months from the balance sheet date in bi-annual instalments.

 

Subsequent to the year end, on 30 June 2024 the company entered a new loan agreement on one of its interest bearing other loans whereby a balance of £335,083 could be subject to a repayment holiday until December 2024, whereupon from January 2025 the company is to repay the loan and interest in 12 equal instalments. The rate of interest was also increased from 3.5% to 5.5% with effect from 30 June 2024.

23
Deferred taxation

Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:

Liabilities
Liabilities
2023
2022
Group
£
£
Accelerated capital allowances
5,284
4,642
Liabilities
Liabilities
2023
2022
Company
£
£
Accelerated capital allowances
5,284
4,642
Group
Company
2023
2023
Movements in the year:
£
£
Liability at 1 May 2022
4,642
4,642
Charge to profit or loss
642
642
Liability at 30 April 2023
5,284
5,284
EID LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
- 30 -
24
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
32,103
30,164

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

25
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of £1 each
864,000
864,000
864,000
864,000
Ordinary redeemable of £1 each
1,750,000
1,750,000
1,750,000
1,750,000
2,614,000
2,614,000
2,614,000
2,614,000

Ordinary and ordinary redeemable shares rank pari passu in all respects except for the holders of ordinary redeemable shares who may request the redemption of any or all of this class of share they hold at par value.

26
Reserves

Currency translation reserve

The currency translation reserve includes all exchange differences resulting from the translation of the financial statements of foreign operations that being the group's sole subsidiary undertaking EID Super Abrasives Ireland Limited.

27
Related party transactions
Transactions with related parties

Turnover totalling £169,764 (2022: £93,672) and purchases totalling £826,733. Delstar Limited also held consignment stock belonging to EID Limited at the balance sheet date totalling £532,194 (2022: £509,030). At the year end balances totalling £959,888 and £434,639 are included within trade debtors and trade creditors respectively (2022: £434,639 and £126,470).

The company has taken advantage of the exemption under accounting standards FRS102 Section 33 'Related Party Disclosures' not to disclose transactions with wholly owned members of the group headed by Edel & Sons Limited.

EID LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
- 31 -
28
Directors' transactions

Advances or credits have been granted by the company to its director. The loan is repayable on demand and is charged interest in arrears at HMRC's official rate of interest for beneficial loans. Movements are as follows:

Description
% Rate
Opening balance
Amounts advanced
Amounts repaid
Closing balance
£
£
£
£
M. B. Lee - Advanced salary
2.00
5,862
5,104
(349)
10,617
5,862
5,104
(349)
10,617
29
Controlling party

The imeadiate and ultimate parent company is Edel and Sons Limited which is incorporated in Israel. Its registered office address is 33 Trumpeldor Street, Petach, Tikva, Israel. The parent company does not prepare group financial statements.

There is no ultimate controlling party.

30
Cash generated from/(absorbed by) group operations
2023
2022
£
£
Profit for the year after tax
211,854
76,710
Adjustments for:
Taxation charged
70,123
29,820
Finance costs
22,900
20,007
Investment income
(19,709)
(7,773)
Amortisation and impairment of intangible assets
1,500
1,500
Depreciation and impairment of tangible fixed assets
6,706
7,638
Other gains and losses
(7,304)
54,073
Movements in working capital:
Decrease in stocks
49,081
174,484
Decrease/(increase) in debtors
45,733
(742,827)
Increase in creditors
139,024
370,941
Cash generated from/(absorbed by) operations
519,908
(15,427)
EID LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
- 32 -
31
Cash generated from/(absorbed by) operations - company
2023
2022
£
£
Profit for the year after tax
266,912
38,678
Adjustments for:
Taxation charged
70,593
29,360
Finance costs
22,900
20,007
Investment income
(19,709)
(7,773)
Amortisation and impairment of intangible assets
1,500
1,500
Depreciation and impairment of tangible fixed assets
6,667
7,600
Other gains and losses
(7,304)
54,073
Movements in working capital:
Decrease in stocks
106,529
193,321
Increase in debtors
(299,565)
(1,038,702)
Increase in creditors
320,940
694,137
Cash generated from/(absorbed by) operations
469,463
(7,799)
32
Analysis of changes in net debt - group
1 May 2022
Cash flows
Exchange rate movements
30 April 2023
£
£
£
£
Cash at bank and in hand
540,907
(87,545)
(3,850)
449,512
Borrowings excluding overdrafts
(1,199,539)
408,252
-
(791,287)
(658,632)
320,707
(3,850)
(341,775)
33
Analysis of changes in net debt - company
1 May 2022
Cash flows
30 April 2023
£
£
£
Cash at bank and in hand
526,288
(123,307)
402,981
Borrowings excluding overdrafts
(1,199,539)
408,252
(791,287)
(673,251)
284,945
(388,306)
2023-04-302022-05-01falseCCH SoftwareCCH Accounts Production 2023.300M. B. LeeS. A. 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