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Report Date : |
07.06.2014 |
IDENTIFICATION DETAILS
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Name : |
SARINE TECHNOLOGIES LTD. |
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Formerly Known As : |
SARIN TECHNOLOGIES LTD |
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Registered Office : |
7 Atirei Yeda Street Atir Yeda Industrial Park Kfar Saba 4464307 |
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Country : |
Israel |
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Date of Incorporation : |
03.11.1988 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Subject is engaged in Developers, manufactures, exporters and marketers of precision technology products based on automated three-dimensional (3-D) geometric measurement for the processing of diamonds and gems. |
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No. of Employees : |
171 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Satisfactory |
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Payment Behaviour : |
No complaints |
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Litigation : |
Clear |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – March 31, 2014
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Country Name |
Previous Rating (31.12.2013) |
Current Rating (31.03.2014) |
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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 Risk |
A2 |
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Moderate Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderate High Risk |
C1 |
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High Risk |
C2 |
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Very High Risk |
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
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Source
: CIA |
SARINE TECHNOLOGIES
LTD.
Telephone 972 9 790 35 00
Fax 972 9 790 35 01
Email: sarine@sarine.com
7 Atirei Yeda Street
Atir Yeda Industrial Park
Kfar Saba 4464307 Israel
Originally established as a private limited company and registered as such as per file No. 51-133220-7 on the 03.11.1988.
In April 2005 converted into a public limited company (keeping the same Registration No.), after offering shares on the Singapore Stock Exchange.
Originally registered under the name BURIMAR LTD., which changed to SARIN RESEARCH, DEVELOPMENT AND MANUFACTURE (1988) LTD. on the 21.09.1989, which changed to SARIN TECHNOLOGIES LTD. on the 30.12.1994, which changed to the present name on the 20.01.2014.
Authorized share
capital 0.00 (no face value), divided into:-
2,000,000,000 ordinary shares of
0.00 each (no face value),
of which 345,884,803 shares were issued.
1. SARIN RESEARCH & DEVELOPMENT LTD., 34.1%, controlled by Hanoh Stark and Ehud Harel,
2. INTERHIGHTECH (1982) LTD., 15.46%, owned by Daniel Benjamin Glinert, Aharon Shapira, Gilad Moran and Uzi Levami,
3. HSBC (S) NOMINEES PTE LTD., 10.9%, an institutional investor,
4. CITIBANK NOMINEES SINGAPORE PTE LTD., 9.4%,
5. DBS NOMINEES PTE LTD., 6.5%, an institutional investor,
6. ASDEW ACQISITIONS PTE LTD., 6.2%, an institutional investor,
7. DBSN SERVICES PTE LTD., 2.9%,
8. MAYBANK KIM ENG SECURITIES PTE LTD., 2.3%,
9. Eyal Avraham Khayat, 2.23%,
10. RAFFLES NOMINEES PTE LTD., 1.34%,
11. Shares are also traded on the Singapore Stock Exchange.
1. Daniel Benjamin Glinert, Chairman,
2. Uzi Levami, General Manager,
3. Eyal Mashiah,
4. Avraham Eshed,
5. Hanoh Stark,
6. Kam Loon Chan,
7. Ehud Harel,
8. Yehezkel Blum,
9. Choo Lin Ong.
Developers, manufactures, exporters and marketers of precision technology products based on automated three-dimensional (3-D) geometric measurement for the processing of diamonds and gems.
95% of Group's 2012 sales for exports, mainly to India (76.5% of sales in 2012).
Sales are to diamond institutes, diamond manufacturers, diamond dealers, gem laboratories, and retailers.
Among clientele: Gemological Institute of America, International Gemological Institute, Central Gemological Laboratory, European Gemological Laboratory, TIFFANY & CO., BAUER, WDC, DCLA, GIA, KARP IMPEX, KP SANGEV, etc.
Operating from headquarters premises, in 7 Atirei Yeda Street, Atir Yeda Industrial Park, Kfar Saba.
Having some 171 employees in SARIN Group, as of 2013.
Current market value SGD 760.95 million.
Group invested US$ 7,714,000 in R&D in 2012 (US$ 6,611,000 in 2011).
Subject is an “Approved Enterprise” and as such entitled for State support, grants and tax relief.
In 2005 the Israeli Investment Centre (IIC) approved an investment plan for the expansion of subject’s facilities.
There are no charges registered on the company's assets.
Consolidated B/S
shows:
US$
(thousands)
30.09.2013 31.12.2012
ASSETS
Current assets
Cash and cash equivalents 15,241 19,155
Short term investments 11,336 17,632
Trade receivables 18,497 7,366
Other receivables 3,156 1,474
Inventory 7,442 6,832
55,672 52,459
Non-current assets
P. P. & E 9,644 5,482
Intangible asset (net) 8,380 9,208
Other non-current assets 1,329 659
19,353 15,349
75,025 67,808
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LIABILITIES
Current liabilities 12,524 11,114
Long-term liabilities 333 556
Equity 62,168 56,138
75,025 67,808
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REVENUES
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
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Consolidated first 9 months of 2013 sales were
US$ 59,697,000 (20.5% increase compared to the parallel period of 2012), making
a gross profit of
US$ 42,734,000, an operating income of US$ 24,664,000 and a net income of
US$ 19,426,000.
Subject's subsidiaries (100%, unless otherwise stated):
GALATEA LTD., developers, manufacturers, exporters and marketers of technology and products applicable to the fully automated detecting and mapping of internal inclusions in rough and polished diamonds.
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%.
According to our:
Bank Leumi Le'Israel Ltd., Diamond Exchange Business Branch (No. 743), Ramat Gan.
Union Bank of Israel Ltd., Ramat Gan Branch (No. 062), Ramat Gan.
Since we could not speak to subject's officials, we could not verify a/m bank data.
Nothing unfavorable learned.
Despite our efforts, we were unable to speak with subject's officials, as they were always unavailable. We left messages which so far remain unanswered.
Subject is a veteran business, considered a leading company in their field.
In May 2004 subject acquired GALATEA for the sum of US$ 10.8 million, of which US$ 9 million in cash.
Israel's diamond industry remarked on impressive growth in almost all trade parameters in 2013, from the data by Israel's Diamond Administration at the Ministry of Economics: Net export of polished diamonds rose by 11.6% from 2012, reaching US$ 6.2 billion. The market has been volatile in recent years: the branch –in Israel as well as globally- experienced its worst depression in the 2nd half of 2008 and 2009 due to the global economic crisis (almost an entire freeze and collapse in sales of about 70% in the peak of the crisis), then recovered in 2010 and mainly in and fell again in 2012 (net export fell by 23% in 2012 from 2011).
Net rough diamond exports totaled US$2.9 billion in 2013, a mere rise from 2012.
Net imports of polished diamonds remained in similar level as 2012 (after drop by 25% in 2012 from 2011), totaling US$4.3 billion, while net rough diamonds imports summed at US$ 4 billion, 4% up from 2012 (when it fell 13% from 2011).
According to the President of the Israeli Diamonds Association, in 2010 the trade in the local diamond sector rolled annual turnover of US$ 25 billion while total debt to the banks stands on US$ 1.5 billion, down from US$ 2.4 billion in the eve of the global crisis. The Ministry of Economics also assisted the local diamond exporters by providing bank guarantees in total scope of NIS 1 billion.
In February 2009, Israel was ranked as the world’s largest exporter of cut diamonds, followed by India, Belgium and South Africa.
Local diamond sector employs some 20,000 persons.
Notwithstanding the lack of updated data from subject's officials, considered good for trade engagements.
Note: Since February 2013 Israel Post has started using a new area code method of 7 digits (the old method of 5 digits is no longer valid).
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.59.20 |
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1 |
Rs.99.52 |
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Euro |
1 |
Rs.80.83 |
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.