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Report No. : |
304836 |
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Report Date : |
24.01.2015 |
IDENTIFICATION DETAILS
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Name : |
GALATEA LTD. |
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Formerly Known as : |
DIGI GRAPH LTD |
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Registered Office : |
P.O.
Box 1561, 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) : |
30.09.2014 (Consolidated Statement - Parent Company, Sarin
Technologies Ltd.) |
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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 – September 30, 2014
|
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.
|
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.
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
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.50 |
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|
1 |
Rs.92.16 |
|
Euro |
1 |
Rs.69.62 |
INFORMATION DETAILS
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Analysis Done by
: |
SUB |
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Report Prepared
by : |
MNL |
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 |
|
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 |
|
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 |
|
-- |
NB |
New Business |
-- |
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.