MIRA INFORM REPORT

 

 

Report Date :           

07.04.2011

 

IDENTIFICATION DETAILS

 

Name :

HONDA TRADING CORPORATION 

 

 

Registered Office :

Daiichi Tekko Bldg 2F, 1-8-2 Marunouchi Chiyodaku Tokyo 100-0005

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2010

 

 

Date of Incorporation :

March 1972

 

 

Com. Reg. No.:

(Tokyo-Chiyodaku) 071634

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Import, Export, Wholesale of steels, machinery, nonferrous metals, seafood, other

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Maximum Credit Limit :

Yen 5,260.7 Million

Status :

Satisfactory

Payment Behaviour :

Usually Correct 

Litigation :

-----

 

 

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 – December 31, 2010

 

Country Name

Previous Rating

                   (30.09.2010)                  

Current Rating

(31.12.2010)

Japan

a1

a1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

Company name

 

HONDA TRADING CORPORATION

(The given name is its subsidiary in India)

 

 

REGD NAME

 

KK Honda Trading

 

 

MAIN OFFICE

Daiichi Tekko Bldg 2F, 1-8-2 Marunouchi Chiyodaku Tokyo 100-0005 JAPAN

Tel: 03-3215-9000     Fax: 03-3215-9020

 

URL:                             http://www.hntre.co.jp/

E-Mail address:                        hta_admin@htaoh.honda.com

 

 

ACTIVITIES  

 

Import, export, wholesale of steels, machinery, nonferrous metals, seafood, other

 

 

BRANCHES   

 

Nagoya, Osaka, Tochigi, Saitama, Mie, Suzuka (Shizuoka), Kumamoto

 

 

OVERSEAS   

 

USA (5), Brazil (3), Europe (4), Thailand (3), China (4), Taiwan (2), Canada, Mexico, India, Indonesia, Korea, other (Tot 53 over 21 countries) (--subsidiaries & affiliates)

 

 

OFFICER(S)  

 

SHIGERU TAKAGI, PRES                      Tomonao Osaka, s/mgn dir

Tadashi Matsumoto, mgn dir                   Akira Takeshita, mgn dir

Junji Yamazaki, dir                                 Takashi Mori, dir

 

Yen Amount:     In million Yen, unless otherwise stated

 

SUMMARY    

 

FINANCES                    FAIR                             A/SALES          Yen 251,340 M

PAYMENTS                  REGULAR                     CAPITAL           Yen 1,600 M

TREND             SLOW                          WORTH            Yen 23,317 M

STARTED                     1951                             EMPLOYES      340

 

 

COMMENT    

 

GENERAL TRADING HOUSE, WHOLLY OWNED BY HONDA MOTOR CO LTD.  FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

 

 MAX CREDIT LIMIT: YEN 5,260.7 MILLION, NORMAL 30 DAYS TERMS

 

 

HIGHLIGHTS

 

The subject company was established on the basis of an overseas trading division separated from Honda Motor Co Ltd, nation’s leading carmaker, Tokyo (see REGISTRATION).  This is a general trading house for import, export and wholesale of steels, auto parts & components, machinery, nonferrous metals, synthetic resins, marine & farm products, lumber, other.  Supplies to the parent: steels, imported aluminum products, parts & components; and exports Honda’s car knockdown parts & components.  Actively expanding into non-Honda networks.

 

 

FINANCIAL INFORMATION

 

Financials are consolidated by the parent, Honda Motor Co, and disclosed only in digest forms

 

The sales volume for Mar/2010 fiscal term amounted to Yen 251,340 million, a 39% down from Yen 411,957 million in the previous term.  At the parent side, sales were substantially affected by the global economic downturn particularly in the first half of the term.  Sales of four-wheeled cars declined.  Consumer spending was extremely sluggish.  High Yen hurt export/import earnings & profits in Yen terms.  The recurring profit was posted at Yen 2,003 million and the net profit at Yen 1,134 million, respectively, compared with Yen 2,969 million recurring profit and Yen 1,195 million net profit, respectively, a year ago.  .

 

For the term that just ended Mar 2011 the recurring profit was projected at Yen 2,100 million and the net profit at Yen 1,200 million, respectively, on a 10% rise in turnover, to Yen 276,000 million. At parent side, global sales of four-wheeled cars were up 6.5% from the previous term.  Those of motorcycles by 20%, led by sales in Asia.  The firm temporarily closed its Tochigi Branch Office as damaged by the recent Earthquake/Tsunami hit the Tohoku Region.

 

The financial situation is considered FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 5,260.7 million, on normal 30 days terms.

 

 

REGISTRATION

 

Date Registered:  Mar 1972

Regd No.:           (Tokyo-Chiyodaku) 071634

Legal Status:      Limited Company (Kabushiki Kaisha)

Authorized:         6.4 million shares

Issued:                1.6 million shares

Sum:                   Yen 1,600 million

Major shareholders (%): Honda Motor Co Ltd*(100)

*.. Major carmaker ranking in 2nd in domestic market, Tokyo, founded 1948, listed Tokyo, Osaka, New York, London S/E’s, capital Yen 86,067 million, sales Yen 8,579,174 million, operating profit Yen 363,775 million, recurring profit Yen 336,198 million, net profit Yen 268,400 million, total assets Yen 11,364,578 million, net worth Yen 4,456,430 million, employees 176,815, pres Takanobu Ito

 

Consolidated Financials are attached (See SUPPLEMENTS)

 

Nothing detrimental is known as to the commercial morality of executives.

 

 

OPERATION

 

Activities: Trading house for import, export and wholesale of: steels, steel products  (24.0%), automobile parts & components, including knockdown parts (24.9%), nonferrous  metals (27.6%), synthetic resins, marine & farm products, pulp & paper, lumber (9.4%), machinery & equipment (9.0%), automobile recycling, others (5.1%).

 

Sales by regions: Domestic 27.5%, Americas 34.6%, Asia (17.8%), China (13.7%), Europe (6.4%) Import 12.9%, Export 50.4%, Domestic Sales 36.7%.

 

Clients: [Mfrs, wholesalers] Honda Motor, Honda Trading America, Honda Trading Europe, Honda Trading Thailand, Honda Trading China, Miyuki Industries Thailand, Steel Center, Asahi Seiren, Miyuki Industries, other.

            No. of accounts: 1,000

            Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Nippon Steel, Honda Trading America, Honda Trading Europe, Honda Motor, Honda Engineering, JFE Steel, Matsushita Electric Ind, Allis Sanyo, Tanaka Seimitsu Kogyo, other.

 

Payment record: Regular

 

Location: Business area in Tokyo.  Office premises at the caption address are leased and maintained satisfactorily.

 

Bank References:

MUFG (H/O)

Mizuho Corporate Bank (H/O)

Relations: Satisfactory

 

FINANCES

(In Million Yen)

 

       Terms Ending:

31/03/2011

31/03/2010

31/03/2009

31/03/2008

Annual Sales

　

276,000

251,340

411,957

441,233

Recur. Profit

　

2,100

2,003

2,969

　

Net Profit

　

1,200

1,134

1,195

1,145

Total Assets

　

　

98,418

94,717

135,814

Current Assets

　

　

84,581

80,643

　

Current Liabs

　

　

74,663

71,827

　

Net Worth

　

　

23,317

22,286

21,200

Capital, Paid-Up

　

　

1,600

1,600

1,600

Div.P.Share(¥)

　

　

75.00

75.00

75.00

<Analytical Data>

(%)

(%)

(%)

(%)

    S.Growth Rate

9.81

-38.99

-6.64

4.99

    Current Ratio

 

..

113.28

112.27

..

    N.Worth Ratio

..

23.69

23.53

15.61

    R.Profit/Sales

 

0.76

0.80

0.72

..

    N.Profit/Sales

0.43

0.45

0.29

0.26

    Return On Equity

..

4.86

5.36

5.40

 

Notes: Forecast (or estimated figures) for the 31/03/2011 fiscal term

 

 

SUPPLEMENTS

 

CONSOLIDATED FINANCIALS OF THE PARENT, HONDA MOTOR CO LTD

FINANCES: (Consolidated in million yen)

 

　

　

Terms Ending:

31/03/2010

31/03/2009

INCOME STATEMENT

 

 

 

  Annual Sales

　

8,579,174

10,011,241

 

  Cost of Sales

6,878,075

7,982,779

 

      GROSS PROFIT

1,701,099

2,028,462

 

  Selling & Adm Costs

1,337,324

1,838,819

 

      OPERATING PROFIT

363,775

189,643

 

  Non-Operating P/L

-27,577

-27,909

 

      RECURRING PROFIT

336,198

161,734

　

      NET PROFIT

268,400

137,005

BALANCE SHEET

 

 

 

 

  Cash

　

1,119,902

690,369

 

  Receivables

 

883,476

854,214

 

  Inventory

 

935,629

1,243,961

 

  Securities, Marketable

　

　

 

  Other Current Assets

1,674,717

1,832,634

 

      TOTAL CURRENT ASSETS

4,613,724

4,621,178

 

  Property & Equipment

2,086,663

2,147,721

 

  Intangibles

 

　

　

 

  Investments, Other Fixed Assets

4,928,728

5,050,018

 

      TOTAL ASSETS

11,629,115

11,818,917

 

  Payables

 

1,066,344

1,706,819

 

  Short-Term Bank Loans

722,296

977,523

 

　

 

　

　

 

  Other Current Liabs

1,630,490

1,553,026

 

      TOTAL CURRENT LIABS

3,419,130

4,237,368

 

  Debentures

 

　

　

 

  Long-Term Bank Loans

　

　

 

  Reserve for Retirement Allw

　

　

 

  Other Debts

　

3,753,555

3,451,205

 

      TOTAL LIABILITIES

7,172,685

7,688,573

 

      MINORITY INTERESTS

 

 

 

Common stock

86,067

86,067

 

Additional paid-in capital

172,529

172,529

 

Retained earnings

5,304,473

5,099,267

 

Evaluation p/l on investments/securities

　

　

 

Others

 

(1,034,909)

(1,155,807)

 

Treasury stock, at cost

(71,730)

(71,712)

 

      TOTAL S/HOLDERS` EQUITY

4,456,430

4,130,344

　

      TOTAL EQUITIES

11,629,115

11,818,917

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

31/03/2010

31/03/2009

 

Cash Flows from Operating Activities

　

1,544,212

383,641

 

Cash Flows from Investment Activities

-595,751

-1,133,364

 

Cash Flows from Financing Activities

-559,244

530,862

　

Cash, Bank Deposits at the Term End

　

1,119,902

690,369

ANALYTICAL RATIOS            Terms ending:

31/03/2010

31/03/2009

 

 

Net Worth (S/Holders' Equity)

4,456,430

4,130,344

 

 

Current Ratio (%)

134.94

109.06

 

 

Net Worth Ratio (%)

38.32

34.95

 

 

Recurring Profit Ratio (%)

3.92

1.62

 

 

Net Profit Ratio (%)

3.13

1.37

 

 

Return On Equity (%)

6.02

3.32

 

 

 

 

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.44.22

UK Pound

1

Rs.72.25

Euro

1

Rs.63.09

 

 

RATING EXPLANATIONS

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>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

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

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

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

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

 

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%)

 

 

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.