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Report No. : |
302845 |
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Report Date : |
16.01.2015 |
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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Financials (as on) : |
30.09.2014 |
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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 : |
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 Employee : |
170 [2014] |
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 – September 30, 2014
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Country Name |
Previous Rating (30.06.2014) |
Current Rating (30.09.2014) |
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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 |
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. Cut diamonds, high-technology equipment, and pharmaceuticals
are among the leading exports. Its major imports include crude oil, grains, raw
materials, and military equipment. Israel usually posts sizable trade deficits,
which are covered by tourism and other service exports, as well as significant
foreign investment inflows. Between 2004 and 2011, growth averaged nearly 5%
per year, led by exports. 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. 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. The economy has recovered
better than most advanced, comparably sized economies, but slowing demand
domestically and internationally, and a strong shekel, have reduced forecasts
for the next decade to the 3% level. Natural gas fields discovered off Israel's
coast since 2009 have brightened Israel's energy security outlook. The Tamar
and Leviathan fields were some of the world's largest offshore natural gas
finds this past decade. The massive Leviathan field is not due to come online
until 2018, but production from Tamar provided a one percentage point boost to
Israel's GDP in 2013 and is expected to contribute 0.5% growth in 2014. In
mid-2011, public protests arose around income inequality and rising housing and
commodity prices. Israel's income inequality and poverty rates are among the
highest of OECD countries and there is a broad perception among the public that
a small number of "tycoons" have a cartel-like grip over the major
parts of the economy. 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. In May 2013 the Israeli government, in a politically
difficult process, passed an austerity budget to reign in the deficit and
restore confidence in the government's fiscal position. Over the long term,
Israel faces structural issues, including low labor participation rates for its
fastest growing social segments - the ultra-orthodox and Arab-Israeli
communities. Also, Israel's progressive, globally competitive, knowledge-based
technology sector employs only 9% of the workforce, with the rest employed in
manufacturing and services - sectors which face downward wage pressures from
global competition.
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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 (SGX:U77).
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
346,047,303 shares were issued.
1. SARIN RESEARCH & DEVELOPMENT LTD.,
34.4%, controlled by Hanoh Stark and Ehud Harel,
2. HSBC (S) NOMINEES PTE LTD., 15.1%, an
institutional investor,
3. INTERHIGHTECH (1982) LTD., 15%, owned by
Daniel Benjamin Glinert, Aharon Shapira, Gilad Moran and Uzi Levami,
4. CITIBANK NOMINEES SINGAPORE PTE LTD., 10%,
5. DBS NOMINEES PTE LTD., 8.3%, an
institutional investor,
6. DBSN SERVICES PTE LTD., 3.7%,
7. RAFFLES NOMINEES PTE LTD., 2.5%,
8. Eyal Avraham Khayat, 2.1%,
9. MAYBANK KIM ENG SECURITIES PTE LTD., 1.9%,
10. 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. Chan Kam Loon,
7. Ehud Harel,
8. Yehezkel Blum,
9. Ms. Valerie Ong Choo Lin.
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 2013 and 2012 sales for
exports, mainly to India (76.5% of sales in 2013 and 2012).
Sales are to diamond institutes, diamond manufacturers,
diamond dealers, gem laboratories, and retailers.
Gemological Institute of America (GIA),
International Gemological Institute, Central Gemological Laboratory, European
Gemological Laboratory, TIFFANY & CO., BAUER, WDC, DCLA, GIA, KARP IMPEX,
KP SANGEV
Operating from headquarters premises, in 7
Atirei Yeda Street, Atir Yeda Industrial Park, Kfar Saba.
Having some 170 employees in SARIN Group, as
of beginning of 2014. There are further some 380 employees in Indian
subsidiary, and further in other subsidiaries.
Current market value SGD 937.93 million.
SARIN Group invested US$ 9,624,000 in
R&D in 2013 (US$ 7,715,000 in 2012).
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.
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
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LIABILITIES
Current
liabilities 14,586 13,912
Long-term
liabilities 220 343
Equity 76,198 67,334
91,004 81,589
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Consolidated
Statement of Income
US$
(thousands)
Year
ended 31.12
2011 2012 2013
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
====== ====== =======
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.
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 PVT 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.
Diamonds are one of the world’s, and
specifically Africa’s, major natural resources. An estimated US$13 billion
worth of rough diamonds are produced per year, of which approximately US$8.5
billion are from Africa (approximately 65%). The diamond industry employs
approximately ten million people around the world, both directly and
indirectly, across a wide spectrum of roles from mining to retail. Global
diamond jewellery sales continue to grow, increasing three-fold in the past 25
years, and are currently worth in excess of US$72 billion every year.
Notwithstanding
the lack of updated data from subject's officials, considered good for trade
engagements.
Maximum unsecured credit recommended US$
1,000,000.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.61.76 |
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1 |
Rs.94.02 |
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Euro |
1 |
Rs.72.63 |
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.