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Report Date : |
26.12.2013 |
IDENTIFICATION DETAILS
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Name : |
GALATEA LTD |
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Registered Office : |
P.O. Box 1156, ROSH PINA (1200000) Merom Galil industrial Park Dalton Industrial Zone Dalton 1381000 |
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Country : |
Israel |
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Financials (as on) : |
30.06.2012 |
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Date of Incorporation : |
01.11.1987 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Developers, manufactures, exporters and marketers of
technology and products applicable to the fully automated detecting and
mapping of internal inclusions in rough and polished diamonds. |
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No. of Employees : |
15 |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Status : |
Moderate |
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Payment Behaviour : |
No complaints |
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Litigation : |
Clear |
NOTES :
Any query related to this report can be made
on e-mail: infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – March 31st, 2013
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
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Israel |
A2 |
A2 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
ISRAEL - ECONOMIC OVERVIEW
Israel has a technologically advanced market economy. Its
major imports include crude oil, grains, raw materials, and military equipment.
Cut diamonds, high-technology equipment, and pharmaceuticals are among the
leading exports. Israel usually posts sizable trade deficits, which are covered
by tourism and other service exports, as well as significant foreign investment
inflows. The global financial crisis of 2008-09 spurred a brief recession in
Israel, but the country entered the crisis with solid fundamentals - following
years of prudent fiscal policy and a resilient banking sector. The economy has
recovered better than most advanced, comparably sized economies. In 2010,
Israel formally acceded to the OECD. Israel's economy also has weathered the
Arab Spring because strong trade ties outside the Middle East have insulated
the economy from spillover effects. Natural gasfields discovered off Israel's
coast during the past two years have brightened Israel''s energy security
outlook. The Leviathan field was one of the world''s largest offshore natural
gas finds this past decade, and production from the Tama field is expected to
meet all of Israel''s natural gas demand beginning mid-2013. In mid-2011,
public protests arose around income inequality and rising housing and commodity
prices. The government formed committees to address some of the grievances but
has maintained that it will not engage in deficit spending to satisfy populist
demands
Source
: CIA
GALATEA LTD.
Telephone 972 4 699 01 21
Fax 972 4 698 70 77
P.O. Box 1156, ROSH PINA (1200000)
Merom Galil industrial Park
Dalton Industrial Zone
Dalton 1381000 Israel
A private limited company, incorporated as per file No. 51-123885-9 on the 01.11.1987.
Originally registered under the name DIGI GRAPH LTD., which changed to the present name on the 09.03.2004.
Authorized share capital NIS 200,000.00, divided into -
20,000,000 ordinary shares of NIS 0.01 each,
of which 4,179,019 shares amounting to NIS 41,790.19 were issued.
Subject is fully owned by SARIN TECHNOLOGIES LTD., a public limited company whose shares are traded on the Singapore Stock Exchange, controlled by:
1. SARIN RESEARCH AND DEVELOPMENT LTD., 34.1%, controlled by Hanoh Stark and Ehud Harel,
2. INTERHIGHTECH (1982) LTD., 15.5%, owned by Daniel Benjamin Glinert, Aharon Shapira, Gilad Moran and Uzi Levami.
In May 2004 SARIN TECHNOLOGIES acquired 100% of subject for the sum of US$ 10.8 million of which US$ 9 million in cash.
1. Uzi Levami, General Manager of SARIN TECHNOLOGIES,
2. David Block,
3. Zeev Kessler.
GENERAL MANAGER
Ran Ziskind.
Developers, manufactures, exporters and marketers of technology and products applicable to the fully automated detecting and mapping of internal inclusions in rough and polished diamonds.
95% of sales are export.
Group sales are mainly to India (76.5% of sales in 2012).
Sales are to diamond institutes, diamond manufacturers, diamond dealers, gem laboratories, and retailers.
Among SARIN Group clientele: Gemological Institute of America (GIA), International Gemological Institute, Central Gemological Laboratory, European Gemological Laboratory, TIFFANY & CO., BAUER, WDC, DCLA, GIA, KARP IMPEX, KP SANGEV, etc.
Operating from large rented premises, in Merom Galil industrial Park, Industrial Zone, Dalton.
Had 15 employees in the end of 2010, current number unavailable.
Having over 171 employees serving the SARIN TECHNOLOGIES Group.
Financial data not forthcoming.
There are no charges registered on the company's assets.
SARIN TECHNOLOGIES LTD. current market value SGD 639.9 million.
Financial data is included in the consolidated B/S of parent company, SARIN TECHNOLOGIES LTD., which shows:
US$ (thousands)
30.06.2012 31.12.2010
ASSETS
Current assets
Cash and cash equivalents 19,640 14,841
Short term investments 17,147 19,105
Trade receivables 7,366 6,683
Other receivables 1,474 1,338
Inventory 6,832 6,264
52,459 48,231
Non-current assets
P. P. & E 5,482 2,903
Intangible asset (net) 9,208 9,521
Other non-current assets 659 443
15,349 12,867
67,808 61,098
====== ======
LIABILITIES
Current liabilities 11,114 12,088
Long-term liabilities 556 807
Equity 56,138 48,203
67,808 61,098
SARIN
TECHNOLOGIES LTD.
Consolidated
Statement of Income
US$ (thousands)
Year ended 31.12
2010 2011 2012
Sales 45,663 57,803 63,750
Gross profit 29,350 38,281 43,388
Operating profit 14,430 21,256 24,459
Profits before taxes on income 13,849 21,434 24,520
Net profit 11,111 17,366 20,755
====== ====== =======
SARIN TECHNOLOGIES LTD., parent company, developers, manufacturers, exporters and marketers of precision technology products based on automated three-dimensional (3-D) geometric measurement for the processing of diamonds and gems. Subsidiaries (100% unless otherwise stated):
SARINE COLOR TECHNOLOGIES LTD. (Israel)
SARINE POLISHING TECHNOLOGIES LTD. (Israel)
SARIN HOLDINGS USA LTD. (Israel)
SARIN TECHNOLOGIES INDIA PRIVATE LTD. (India)
SARIN HONG KONG LTD. (Hong Kong)
SARINE NORTH AMERICA INC. (USA)
SARIN IGT 10H INC. (USA)
SARIN IGT 10I INC. (USA)
SARIN IGT 10JKL INC. (USA)
SUSNY LLC (USA)
IDEX ONLINE SA7, 23%.
Bank Hapoalim Ltd., Rosh Pina Branch (No. 542), Rosh Pina, account No. 176769.
A check with the Central Banks' database did not reveal any negative information regarding subject's a/m account.
Nothing unfavorable learned.
Despite our efforts, we were unable to speak with subject's General Manager, as he was always unavailable. We left messages which so far remain unanswered.
SARIN TECHNOLOGIES is considered a leading company in their field.
Export of polished diamonds from Israel fell by 23% in 2012 from 2011, after the sector recovered in 2010 and mainly in 2011 from one of the worst depressions in the global diamond sector due to the economic crisis in global markets that erupted in 2008. The sector experienced almost an entire freeze and collapse in sales of about 70% in the peak of the crisis. While the global diamond industry experienced major declines during 2012, Israel saw a steady improvement in its diamond trade in the third and fourth quarters of the year, according to the Diamond Administration at the Ministry of Industry & Trade.
Israel’s net polished diamond exports stood at US$5.6
billion in 2012, compared a decline of 23% from 2011. Net rough diamond exports
totaled US$2.8 billion in
Net imports of polished diamonds dropped 25% from 2011, totaling US$4.27 billion, while net rough imports stood at US$3.8 billion, 13 % less than in 2011.
The diamond sector marked an improvement in almost all parameters in the first 9 months of 2013. Net export of polished diamond increased by 8.7% comparing to the parallel period in 2012, reaching US$ 4.7 billion, while export of rough diamonds marked 8.5% rise to US$ 2.2 billion. Net import of rough diamonds reached US$ 2.9 billion, an increase of 9.4%, whereas net import of polished diamonds fell slightly by 1.1% to US$ 3.06 billion.
Notwithstanding the lack of updated data from subject's officials, considered good for trade engagements.
DIAMOND INDUSTRY – INDIA
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From time immemorial, India is well known in the world as the birthplace
for diamonds. It is difficult to trace the origin of diamonds but history
says that in the remote past, diamonds were mined only in India. Diamond
production in India can be traced back to almost 8th Century B.C.
India, in fact, remained undisputed leader till 18th Century
when Brazilian fields were discovered in 1725 followed by emergence of S.
Africa, Russia and Australia.
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The achievement of the Indian diamond industry was possible only due to
combination of the manufacturing skills of the Indian workforce and the
untiring and unflagging efforts of the Indian diamantaires, supported by
progressive Government policies.
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The area of study of family owned diamond businesses derives its
importance from the huge conglomerate of family run organizations which operate
in the diamond industry since many generations.
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Some of the basic traits of family run business enterprises include
spirit of entrepreneurship, mutual trust lowers transaction costs, small,
nimble and quick to react, information as a source of advantage and
philanthropy.
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Family owned diamond businesses need to improve on many fronts including
higher standard of corporate governance, long-term performance – focused
strategies, modern management and technology.
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Utmost caution is to be exercised while dealing with some medium and
large diamond traders which are usually engaged in fictitious import – export,
inter-company transactions, financially assisted by banks. In the process,
several public sector banks lost several hundred million rupees. They mostly
diverted borrowed money for diamond business into real estate and capital
markets.
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Excerpts from Times of India dated 30th October 2010 is as
under –
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Gem & Jewellery Export Promotion Council in its statistical data has
shown the export of polished diamonds to have increase by 28 % in February
2013. Compared to $ 1.4 bn worth of polished diamond export in February, 2012,
India exported $ 1.84 billion worth of polished diamonds in February 2013. A
senior executive of GJEPC said, “Export of cut and polished diamonds started
falling month-wise after the imposition of 2 % of import duty on the polished
diamonds. But February, 2013 has given a new ray of hope to the industry as the
export of polished diamonds has actually increased by 28 %. It means the
industry is on the track of recovery and round tripping of diamonds has
stopped completely.” Demand has started coming from the US, the UK, Japan and
China. India’s polished diamond export is expected to cross $ 21 bn in 2013-14.
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The banking sector has started exercising restraint while following
prudent risk management norms when lending money to gems and jewellery sector.
This follows the implementation of Basel III accord – a global voluntary
regulatory standard on bank capital adequacy, stress testing and market
liquidity.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.61.87 |
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|
1 |
Rs.101.10 |
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Euro |
1 |
Rs.84.65 |
INFORMATION DETAILS
|
Report
Prepared by : |
NIS |
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
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56-70 |
A |
Financial & operational base are regarded healthy. General unfavourable
factors will not cause fatal effect. Satisfactory capability for payment of
interest and principal sums |
Fairly Large |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Capability to
overcome financial difficulties seems comparatively below average. |
Small |
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11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with full
security |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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NB |
New Business |
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This score serves as a reference to assess SC’s credit risk and
to set the amount of credit to be extended. It is calculated from a composite
of weighted scores obtained from each of the major sections of this report. The
assessed factors and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.