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Report Date : |
24.11.2014 |
IDENTIFICATION DETAILS
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Name : |
GALATEA LTD. |
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Registered Office : |
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Country : |
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Financials (as on) : |
30.09.2014 |
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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 [In 2010] |
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 – June 1, 2014
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Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
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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 |
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Source
: CIA |
GALATEA LTD.
Telephone 972 4 699 01 21
Fax 972 4 698 70 77
P.O. Box 1561,
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.
SHARE CAPITAL
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., 33.4%,
controlled by Hanoh Stark and Ehud Harel,
2. INTERHIGHTECH (1982) LTD., 15%, 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.
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.
Some 95% of sales are export.
Group sales are mainly to India (76.5% of
sales in 2013 and 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 in subject unavailable.
Having over 171 employees serving SARIN
TECHNOLOGIES Group.
Financial data not forthcoming.
SARIN Group invested US$ 9,624,000 in
R&D in 2013 (US$ 7,715,000 in 2012).
SARIN TECHNOLOGIES LTD. current market value
SGD 1.01 billion.
There are no charges registered on the company's assets.
Financial data is included in the
consolidated B/S of parent company, SARIN TECHNOLOGIES LTD., which shows:
US$
(thousands)
30.09.2014 31.12.2013
ASSETS
Current assets
Cash and cash equivalents 16,163 20,011
Short term investments 24,499 13,048
Trade receivables 16,710 15,838
Other receivables 2,350 3,744
Inventory 10,366 8,548
70,088 61,189
Non-current assets
P. P. & E 11,373 10,670
Intangible asset (net) 7,481 8,375
Other non-current assets 2,062 1,355
20,916 20,400
91,004 81,589
====== ======
LIABILITIES
Current
liabilities 14,586 13,912
Long-term
liabilities 220 343
Equity 76,198 67,334
91,004 81,589
====== ======
REVENUES
SARIN TECHNOLOGIES
LTD.
Consolidated
Statement of Income
US$
(thousands)
Year
ended 31.12
2010 2011 2012
Sales 57,803 63,750 76,369
Gross profit 38,281 43,388 54,583
Operating profit 21,256 24,459 29,798
Profits before taxes on income 21,434 24,520 26,475
Net profit 17,366 20,755 23,888
====== ====== =======
SARIN TECHNOLOGIES consolidated revenues for the first 9 months of
2014 were US$ 69,450,000 (16% increase compared to the parallel period in 2013),
making a gross profit of US$ 49,701,000, an operating income of US$ 27,792,000,
and a net income of US$ 23,338,000.
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.
Subject's officials refused to disclose business data.
SARIN TECHNOLOGIES is considered a leading
company in their field.
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% in value terms 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 fell again in 2012 (net export fell 23% in 2012 from
2011).
Net export of
polished diamonds continued to grow in the 1st half of 2014 with 6%
rise in value terms compared to 2013 (fell 6.7% in karat terms), reaching
US$3.55 billion.
Net rough diamond
exports totaled US$2.9 billion in 2013, a mere rise from 2012, and totaled
US$1.75 billion in the 1stH 2014 (up 6% and 11.6% in value and in karat terms,
respectively).
Net imports of
polished diamonds remained in 2013 similar level as 2012 (after drop by 25% in
value in 2012 from 2011), totaling US$4.3 billion, and in the 1stH 2014 reached
US$2.05 billion (up 0.9% in value and 5.7% in karat). Net rough diamonds
imports rose 4% in 2013 summing up at US$4 billion, and summed at US$ 2.2
billion in the 1stH of 2014 (3% rise in value, 10% fall in karat terms).
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.61.85 |
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1 |
Rs.97.01 |
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Euro |
1 |
Rs.77.62 |
INFORMATION DETAILS
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Analysis Done by
: |
SUB |
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Report Prepared
by : |
TPT |
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.