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Report No. : |
340627 |
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Report Date : |
09.09.2015 |
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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Date of Incorporation : |
01.11.1987 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Subject is 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. |
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No. of Employees : |
15 Employees in the end of 2010, current number in subject
unavailable |
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, 2015
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Country Name |
Previous Rating (31.12.2014) |
Current Rating (31.03.2015) |
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Israel |
B1 |
B1 |
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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 2013, 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. Israel's economy also has weathered the Arab Spring because strong trade ties outside the Middle East have insulated the economy from spillover effects. Slowing demand domestically and internationally and reduced investment due to uncertainties caused by the Gaza conflict in summer 2014 have reduced GDP growth to about 2% during 2014. 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 expected to come online no sooner than 2017, but production from Tamar provided a one percentage point boost to Israel's GDP in 2013 and a 0.5% boost 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 and has started splitting up the oligopolies to address some of the grievances but has maintained that it will not engage in deficit spending to satisfy populist demands. 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 |
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 Ehud Harel and Hanoh Stark.
In May 2004 SARIN TECHNOLOGIES acquired 100%
of subject for the sum of US$ 10.8 million of which US$ 9 million in cash.
In January 2015 SARIN RESEARCH AND
DEVELOPMENT LTD. (which held some 33.4% of SARIN TECHNOLOGIES) and
INTERHIGHTECH (1982) LTD. (which held some 15% of SARIN TECHNOLOGIES), transferred
all their holdings in the Company to their respective shareholders.
1. Uzi
Levami, General Manager of SARIN TECHNOLOGIES,
2. David
Block,
3. Zeev
Kessler.
Ran Ziskind.
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.
Some 95% of sales are export.
Group sales are mainly to India (79% of 2014
sales, 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
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 170 employees serving SARIN
TECHNOLOGIES Group.
Financial data not forthcoming.
SARIN Group invested US$ 10,616,000 in
R&D in 2014 (US$ 8,370,000 in 2013).
SARIN TECHNOLOGIES LTD. current market value
SGD 795.2 million.
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)
31.03.2015 31.12.2014
ASSETS
Current assets
Cash and cash equivalents 22,030 20,352
Short term investments 25,247 25,145
Trade and other receivables 13,916 16,008
Inventory 10,912 10,070
72,105 71,575
Non-current assets
P. P. & E 11,384 11,535
Intangible asset (net) 5,987 6,751
Other non-current assets 2,945 2,198
20,316 20,484
92,421 92,059
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LIABILITIES
Current
liabilities 10,347 12,269
Long-term
liabilities 156 159
Equity 81,918 79,631
92,421 92,059
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REVENUES
SARIN TECHNOLOGIES
LTD.
Consolidated Statement of Income
US$ (thousands)
Year ended 31.12
2012 2013 2014
Sales 63,750 76,369 87,770
Gross profit 43,388 54,583 61,903
Operating profit 24,459 29,798 32,947
Profits before taxes on income 24,520 26,475 32,740
Net profit 20,755 23,888 27,230
====== ====== =======
SARIN TECHNOLOGIES consolidated revenues for the first quarter of
2015 were US$ 12,156,000 (50% derease compared to the parallel period in 2014),
making a gross profit of US$ 8,008,000, an operating income of US$ 806,000, and
a net income of US$ 871,000.
Drastic decrease in sales said to be due to
negative sentiment in the midstream of the diamond industry driven by several
factors.
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)
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 officials,
as they were always unavailable. We left messages which so far remain
unanswered.
SARIN TECHNOLOGIES is considered a leading
company in their field.
Israel's diamond
industry continued the growth trend in all trade parameters in 2014, after the
impressive growth in 2013 in most parameters, based on the data by Israel's Diamond
Administration (IDA) at the Ministry of Economics: Net export of polished
diamonds rose by 0.6% from 2013, reaching US$6.269 billion (after rising 11.6%
in 2013), and net rough diamond exports totaled US$3.061 billion in 2014, up
4.2% from 2013 (after a mere rise in 2013). The market has been volatile over
the last years after experiencing its worst depression due to the global
economic crisis, then recovered in 2010 but fell again in 2012. The recovery in
2013 and 2014 is positive news for the local branch (still away from its peak
on the eve of the crisis with export of polished diamonds of US$ 7 billion),
however it is reported that profit margins have been decreasing due to smaller
gaps between rough and polished diamond prices (leading the diamond dealers to
search for new rough sources in hope to decrease costs). Overall, IDA reports
that 2014 was tough year for the diamond industry in Israel and globally.
The data published
for the first quarter of 2015 (compared to the parallel period in 2014) points
on a negative reverse trend in all parameters: Net export of polished diamonds
plunged by close to 30% from the 1stQ 2014, reaching US$1,610
million, and net rough diamond exports decreased by 23%, totaled US$ 694
million. Net imports of polished diamonds fell by 12%, reaching US$ 904
million, while net import of rough diamonds fell 18% totaling US$ 827 million.
Notwithstanding
the lack of updated data from subject's officials, considered good for trade
engagements.
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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.66.61 |
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UK Pound |
1 |
Rs.102.30 |
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Euro |
1 |
Rs.74.61 |
INFORMATION DETAILS
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Analysis Done by
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DIV |
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Report Prepared
by : |
ASH |
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.