|
|
|
MIRA INFORM REPORT
|
Report No. : |
506197 |
|
Report Date : |
04.05.2018 |
IDENTIFICATION DETAILS
|
Name : |
SARINE TECHNOLOGIES LTD. |
|
|
|
|
Registered Office : |
P.O. Box 7182 4 Hacharash Street, Hasharon Towers Neveh Ne’eman Industrial Zone Hod Hasharon 4524075 |
|
|
|
|
Country : |
Israel |
|
|
|
|
Financials (as on) : |
31.12.2017 |
|
|
|
|
Date of Incorporation : |
03.11.1988 |
|
|
|
|
Legal Form : |
Private limited company |
|
|
|
|
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, as well as inclusion mapping. |
|
|
|
|
No. of Employees : |
170 (2017) Group |
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd
January 2017)
|
MIRA’s Rating : |
A |
|
Credit Rating |
Explanation |
Rating Comments |
|
A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
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
|
Country Name |
Previous Rating (30.09.2017) |
Current Rating (31.12.2017) |
|
Israel |
B1 |
B1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low Risk |
A2 |
|
Moderately Low Risk |
B1 |
|
Moderate Risk |
B2 |
|
Moderately High Risk |
C1 |
|
High Risk |
C2 |
|
Very High Risk |
D |
ISRAEL - ECONOMIC
OVERVIEW
Israel has a technologically advanced free market economy. Cut diamonds, high-technology equipment, and pharmaceuticals are among its leading exports. Its major imports include crude oil, grains, raw materials, and military equipment. Israel usually posts sizable trade deficits, which are offset 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 weathered the 2011 Arab Spring because strong trade ties outside the Middle East insulated the economy from spillover effects.
Slowing domestic and international demand and decreased investment resulting from Israel’s uncertain security situation reduced GDP growth to an average of roughly 2.8% per year during the period 2014-17. 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 in the last decade. Political and regulatory issues have delayed the development of the massive Leviathan field, but production from Tamar provided a 0.8% boost to Israel's GDP in 2013 and a 0.3% boost in 2014. One of the most carbon intense OECD countries, Israel generates about 57% of its power from coal and only 2.6% from renewable sources.
Income inequality and high housing and commodity prices continue to be a concern for many Israelis. 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. Government officials have called for reforms to boost the housing supply and to increase competition in the banking sector to address these public grievances. Despite calls for reforms, the restricted housing supply continues to impact younger Israelis seeking to purchase homes. Tariffs and non-tariff barriers, coupled with guaranteed prices and customs tariffs for farmers kept food prices high in 2016. Private consumption is expected to drive growth through 2018, with consumers benefitting from low inflation and a strong currency.
In the long term, Israel faces structural issues including low labor participation rates for its fastest growing social segments - the ultraorthodox and Arab-Israeli communities. Also, Israel's progressive, globally competitive, knowledge-based technology sector employs only about 8% of the workforce, with the rest mostly employed in manufacturing and services - sectors which face downward wage pressures from global competition. Expenditures on educational institutions remain low compared to most other OECD countries with similar GDP per capita.
|
Source
: CIA |
Company
name and address
SARINE TECHNOLOGIES LTD.
Telephone 972
9 790 35 00
Fax 972 9 790 35 01
Email: sarine@sarine.com
P.O. Box 7182
4 Hacharash Street, Hasharon
Towers
Neveh Ne’eman Industrial Zone
HOD HASHARON 4524075 ISRAEL
HISTORY
& LEGAL FORMATION
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.
SHARE
CAPITAL
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
353,470,626 shares were issued.
SHAREHOLDERS
1. CITIBANK NOMINEES SINGAPORE
PTE LTD., 31.68%,
2. DBS NOMINEES PTE LTD.,
25.15%,
3. HSBC (SINGAPORE)
NOMINEES PTE LTD, 13.92%,
4. AXXION SA, 9.16%,
5. Ehud Harel, 7.34%,
6. Hanoh Stark, 7%,
7. PANDANUS PARTNERS L.P, 6.57%,
8. DBSN SERVICES PTE LTD., 6.30%,
9. RAFFLES NOMINEES PTE LTD., 6.18%,
10. UOB KAY HAIN PTE LTD., 6.03%
11. Eyal Avraham Khayat, 2.31%,
12. Shares are also traded on the Singapore Stock
Exchange.
In January 2015 SARIN RESEARCH
AND DEVELOPMENT LTD. (which held some 33.4% of SARINE TECHNOLOGIES) and
INTERHIGHTECH (1982) LTD. (which held some 15% of SARIN TECHNOLOGIES),
transferred all their holdings in the Company to their respective shareholders.
DIRECTORS
1. Daniel Benjamin Glinert, Chairman,
2. Uzi Levami,
3. Eyal Mashiah,
4. Avraham Eshed,
5. Ms. Valerie Ong Choo Lin,
6. Chan Kam Loon,
7. Yehezkel Blum.
GENERAL
MANAGER
David Block
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, as well as inclusion mapping.
80% of revenues are from product
sales, 20% form maintenance services.
94.4% of Group’s 2017 sales were
export, mainly to India (69%).
Sales are to diamond institutes,
diamond manufacturers, diamond dealers, gem laboratories, and retailers.
In 2017, subject scanned over 10
million rough diamonds.
Among 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 headquarters
premises, on an area of 3,400 sq. meters (3.5 floors), in 4 Hacharash Street,
Hasharon Towers, Neveh Ne’eman Industrial Zone, Hod Hasharon.
Had over 170 employees in SARINE
Group in Israel, as of mid-2017. Current actual number of employees not
forthcoming.
MEANS
Current market value SGD 365.2 million.
SARINE Group invested US$
10,519,000 in R&D in 2017 (US$ 10,844,000 in 2016).
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)
31.12.2017 31.12.2016
ASSETS
Current assets
Cash and cash equivalents 16,736 19,467
Short term investments 12,381 18,520
Trade and other receivables 20,157 20,443
Inventory 7,200 9,230
56,474 67,660
Non-current
assets
P. P. & E 15,646 14,064
Intangible asset (net) 6,648 7,469
Other non-current assets 1,595 2,527
23,889 24,060
80,363 91,720
====== ======
LIABILITIES
Current
liabilities 9,437 12,263
Long-term
liabilities 208 144
Equity 70,718 79,313
80,363 91,720
====== ======
REVENUES
Consolidated
Statement of Income
US$
(thousands)
Year
ended 31.12
2017 2016 2015
Sales 58,644 72,524 48,453
Gross profit 39,346 50,289 32,549
Operating profit 9,416 21,210 5,499
Profits before taxes on
income 9,433 21,965 5,302
Net profit 5,764 17,980 3,587
====== ====== =======
OTHER
COMPANIES
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), developers, manufacturers and marketers of instruments for assessing
the light performance,
SARINE POLISHING TECHNOLOGIES
LTD. (Israel), service centers in Israel providing customers with inclusion
detection and mapping
SARINE HOLDINGS USA LTD.
(Israel), An Israeli holding company for the
Group’s North American
subsidiaries. Holds: SARINE NORTH AMERICA INC. (USA), operating company for
SARINE Group’s North American operations; SARINE IGT 10H INC. (USA), SARINE IGT
10I INC. (USA), SARINE IGT 10JKL INC. (USA), latter 3 are real estate companies
SARINE TECHNOLOGIES INDIA
PRIVATE LTD. (India), SARINE Group’s operation arm in India.
SARINE HONG KONG LTD. (Hong
Kong), SARINE Group’s operating arm in the Far East.
IDEX
ONLINE SA, 23%, a publisher of a leading trade magazine and an operator of a web
portal in the Diamond field.
BANKERS
According to our (we could not get subject's officials
cooperation so far, therefore unable to verify the u/m bank details):
Bank Leumi Le'Israel Ltd.,
Diamond Exchange Business Branch (No. 743), Ramat Gan.
Bank Hapoalim Ltd., Ra’anana
Business Branch (No. 394), Ra’anana.
CHARACTER
AND REPUTATION
Nothing unfavorable learned.
This is a veteran company,
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.
In May 2016 subject signed an
agreement with the Israeli Diamond Exchange in which subject will provide
information on inclusion mapping performed by members on rough diamonds to
increase transparency in deals (SARINE Group’s systems are the only ones
performing inclusion mapping)..
In July 2016 subject reported it
delivered a record 20 ‘Galaxy’ family inclusion mapping systems during the
second quarter of 2016 compared to 18 during the first quarter of the year.
In April 2018, subject reported
that K-Uno brand of Japan, is the world's first jewellery retailer to adopt
subject's artificial intelligence based, automated 4Cs grading report.
The diamonds
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. According to Israel's Diamond Administration (IDA) at the
Ministry of Economics, profit margins have been decreasing due to smaller gaps
between rough (increasing) and polished (decreasing) diamond prices.
In
addition, the local diamond sector has been negatively affected by other
significant factors: the production of counterfeit diamonds, whose quality
keeps improving (harming the raw diamonds market), the entrance of new rules by
the local Tax Authorities on the Diamond Exchange for enforcing money
laundering, and the "underground bank" affair.
As a
result, local diamond dealers reported on difficulties in executing
transactions and bad atmosphere in the branch. Signs of recovery appeared
towards the last quarter of 2016 – mainly due to the growing stability of the
market and the industry’s agreement with the Israel Tax Authority in December,
yet the market is still volatile, as witnessed with the endurance of the
depression trend during most of 2017.
SUMMARY
Good
for trade engagements.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
INR 66.61 |
|
|
1 |
INR 90.60 |
|
Euro |
1 |
INR 79.86 |
|
ILS |
1 |
INR 18.48 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
|
Analysis Done by
: |
NIS |
|
|
|
|
Report Prepared
by : |
TRU |
RATING EXPLANATIONS
|
Credit Rating |
Explanation |
Rating Comments |
|
A++ |
Minimum Risk |
Business dealings permissible with minimum
risk of default |
|
A+ |
Low Risk |
Business dealings permissible with low
risk of default |
|
A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
|
B |
Medium Risk |
Business dealings permissible on a regular
monitoring basis |
|
C |
Medium High Risk |
Business dealings permissible preferably
on secured basis |
|
D |
High Risk |
Business dealing not recommended or on
secured terms only |
|
NB |
New Business |
No recommendation can be done due to
business in infancy stage |
|
NT |
No Trace |
No recommendation can be done as the
business is not traceable |
NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.
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 are as follows:
·
Financial condition covering various ratios
·
Company background and operations size
·
Promoters / Management background
·
Payment record
·
Litigation against the subject
·
Industry scenario / competitor analysis
·
Supplier / Customer / Banker review (wherever
available)
This report is issued at
your request without any risk and responsibility on the part of MIRA INFORM
PRIVATE LIMITED (MIPL) or its officials.