The director presents the strategic report for the year ended 30 April 2023.
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.
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.
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.
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
The director presents his annual report and financial statements for the year ended 30 April 2023.
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.
The director who held office during the year and up to the date of signature of the financial statements was as follows:
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.
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.
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.
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.
The group does not generally undertake any research and development expenditure, and none has occurred in this or prior financial year.
Details of future developments can be found in the strategic report.
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.
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
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).
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.
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:
the information given in the strategic report and the director's report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the director's report have been prepared in accordance with applicable legal requirements.
In respect solely of the limitation on the scope of our audit work relating to stock, described above:
we have not obtained all the information and explanations that we considered necessary for the purpose of our audit; and
we were unable to determine whether adequate accounting records had been maintained.
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:
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of director's remuneration specified by law are not made.
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.
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.
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:
ensuring the engagement team collectively had the appropriate experience, competence, and skills to be able to detect irregularities, including fraud;
obtaining an understanding of the legal and regulatory frameworks applicable to the company and the sector in which it operates and determining the following laws and regulations were most significant: The Companies Act 2006, UK GAAP and UK corporate tax laws.
obtaining an understanding of how the company are complying with those legal and regulatory frameworks and made enquiries to the management of known or suspected instances of fraud and non-compliance with laws and regulations,
considering the areas and transactions which may carry a higher level of susceptibility to fraud.
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:
agreeing financial statement disclosures to underlying supporting documentation;
enquiring of management as to actual and potential litigation and claims;
reviewing correspondence with HMRC;
reviewing legal and regulatory costs;
considering audit evidence obtained in other testing areas to see if it gives rise to any indicators of noncompliance with relevant laws and regulations;
challenging assumptions and judgements made by management in its significant accounting estimates and judgements, in particular in relation to stock valuation, debtor recoverability and going concern;
making enquiries with the director and management of any known or alleged instances of fraud or noncompliance of specific laws and regulations, including industry laws; and
auditing the risk of management override of controls or other inappropriate influences over the financial reporting process, including the existence of management accounts review process and through testing journal entries and other adjustments for appropriateness, and evaluating the business rationale of significant transactions outside the normal course of business.
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.
The profit and loss account has been prepared on the basis that all operations are continuing operations.
These financial statements have been prepared in accordance with the provisions relating to medium-sized groups.
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).
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.
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.
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.
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.
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.
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.
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.
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.
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.
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, 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, 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.
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.
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.
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.
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.
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.
Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.
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.
The tax expense represents the sum of the tax currently payable and deferred 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.
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.
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.
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
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.
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.
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.
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).
An analysis of the group's turnover is as follows:
The average monthly number of persons (including directors) employed by the group and company during the year was:
Their aggregate remuneration comprised:
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 1 (2022 - 1).
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:
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.
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.
Details of the company's subsidiaries which are held above at cost at 30 April 2023 are as follows:
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)).
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.
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.
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:
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.
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.
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.
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.
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:
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.