MIRA INFORM REPORT

 

 

Report Date :           

15.12.2011

 

IDENTIFICATION DETAILS

 

Name :

HONDA R&D CO LTD 

 

 

Registered Office :

1-4-1 Chuo Wako Saitama-Pref 351-0013

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2011

 

 

Date of Incorporation :

July 1960

 

 

Com. Reg. No.:

(Saitama-Wako) 046841

 

 

Legal Form :

Limited Company

 

 

Line of Business :

R & D of automobile, motorcycles, other vehicles

 

 

No. of Employees :

300 persons

 

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 7,962.6 Million

 

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

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 – September 30th, 2011

 

Country Name

Previous Rating

                   (30.06.2011)                  

Current Rating

(30.09.2011)

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 R&D CO LTD

 

 

REGD NAME

 

KK Honda Gijutsu Kenkyusho (Gijutsu means Technology in Japanese)

 

 

MAIN OFFICE

 

1-4-1 Chuo Wako Saitama-Pref 351-0013 JAPAN　

Tel: 048-461-2511    

 

URL:                 http://www.honda.co.jp/RandD

E-mail:             (thru the URL to each division)    

 

 

ACTIVITIES

 

R & D of automobile, motorcycles, other vehicles

 

 

BRANCHES

 

Asaka, Tochigi, Takasu (Hokkaido)

 

 

FACTORIES  

 

Wako (3), Tochigi, Saitama (--R&D Centers)

 

 

OVERSEAS

 

USA, Germany, UK, Italy, China

 

OFFICER(S)

 

YOSHIHARU YAMAMOTO, PRES                     

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY    

 

FINANCES                    FAIR                 A/SALES          Yen 433,677 M

PAYMENTS      REGULAR         CAPITAL           Yen 7,400 M

TREND             STEADY           WORTH            Yen 352,306 M*

STARTED                     1960                 EMPLOYES      300 (about)

                                                * Estimated only as financials are only partially disclosed

 

COMMENT    

 

R6D INSTITUTE WHOLLY OWNED BY HONDA MOTOR CO LTD 

 

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR CREDIT ENGAGEMENTS: JPY 2,000,000.00

 

MAX CREDIT LIMIT: YEN 7,962.6 MILLION, 30 DAYS NORMAL TERMS

 

 

HIGHLIGHTS

 

The subject company was established on the basis of R&D division separated from Honda Motor Co Ltd (See REGISTRATION) to concentrate on R&D business independently from Honda Motor.  Offers R&D technologies for automobile, motorcycles, power products, aircraft engine, and other vehicles, manufactured and to be manufactured by Honda Motor.  Has 5 R&D centers domestically and 5 overseas.  Handles new vehicle development.   Client is exclusively Honda Motor Co Ltd.

 

 

FINANCIAL INFORMATION

 

Financials are fully consolidated by the parent, Honda Motor Co, and only partially disclosed as follows.

 

The sales volume for Mar/2011 fiscal term amounted to Yen 433,677 million, a 5.0% up from Yen 414,110 million in the previous term.  R&D for new vehicles, including eco-friendly cars, hybrid cars, electric cars, etc increased.  The net profit was posted at Yen 1,521 million, compared with Yen 385 million net profit a year ago.  Net worth is estimated only, as full financials are not disclosed.

 

For the current term ending Mar 2012 the net profit is projected at Yen 1,550 million, on a 5% rise in turnover, to Yen 455,000 million.

 

The financial situation is considered FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 7,962.6 million, on 30 days normal terms.  The proposed amount is considered well within the firm’s financial capacities.

 

 

REGISTRATION

 

Date Registered:  Jul 1960

Regd No.:        (Saitama-Wako) 046841

Legal Status:   　Limited Company (Kabushiki Kaisha)

Authorized:      　59.2 million shares

Issued:             　14.8 million shares

Sum:                　Yen 7,400 million

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

 

* Honda Motor Co Ltd, major carmaker ranked in 2nd in domestic market, founded 1948, listed Tokyo, Osaka, New York, London S/E’s, capital Yen 86,067 million, sales Yen 8,936,867 million, operating profit Yen 569,775 million, recurring profit Yen 630.548 million, net profit Yen 524,088 million, total assets Yen 11,570,874 million, net worth Yen 4,582,912 million, employees 179,670, pres Takanobu Ito

 

Consolidated Financials are attached (See SUPPLEMNTS)

 

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

 

 

OPERATION

 

Activities: R&D institute, owned by Honda Motor Co Ltd, for automobile, motorcycles, power products, aircraft engines, fundamental technology, other vehicle-related products (--100%).

 

R-stage (research): pursues innovative new technologies and evaluate based on a long term vision toward completion;

D-stage (development): promotes activities directly related to the creation of products

 

Clients: Honda Motor Co Ltd & group firms         

No. of accounts: 1

            Domestic areas of activities: Nationwide

Suppliers [Mfrs, wholesalers] Hirai Co, Phiro Corp, Panasonic Corp, Hitachi Ltd, TS Tech Co, Honda Lock Mfg, Honda Engineering, Showa Corp, other

 

Payment record: Regular

 

Location: Business area in Wako City, Saitama-Pref.  Office premises at the caption address are owned and maintained satisfactorily.

 

Bank References:

·         Resona Bank (Tokyo-Chuo)

·         MUFG (H/O)

Relations: Satisfactory

FINANCES

(In Million Yen)

 

Terms Ending:

　

31/03/2012

31/03/2011

31/03/2010

31/03/2009

Annual Sales

　

455,000

433,677

414,110

529,789

Recur. Profit

　

　

　

　

　

Net Profit

　

1,550

1,521

385

11,903

Total Assets

　

　

N/A

N/A

N/A

Net Worth

　

　

352,306

350,785

350,400

Capital, Paid-Up

　

　

7,400

7,400

7,400

Div.P.Share(¥)

　

　

　

　

　

<Analytical Data>

(%)

(%)

(%)

(%)

    S.Growth Rate

4.92

4.73

-21.83

64.39

    Current Ratio

 

 

..

..

..

    N.Worth Ratio

 

..

..

..

    N.Profit/Sales

0.34

0.35

0.09

2.25

 

Notes: Financials are only partially disclosed.

Forecast (or estimated) figures for the 31/03/2012 fiscal term

 

 

SUPPLEMENTS

 

CONSOLIDATED FINANCIALS OF THE PARENT, HONDA MOTOR CO LTD

FINANCES: (Consolidated in million yen)

 

　

　

Terms Ending:

31/03/2011

31/03/2010

INCOME STATEMENT

 

 

 

  Annual Sales

　

8,936,867

8,579,174

 

  Cost of Sales

6,984,432

6,878,075

 

      GROSS PROFIT

1,952,435

1,701,099

 

  Selling & Adm Costs

1,382,660

1,337,324

 

      OPERATING PROFIT

569,775

363,775

 

  Non-Operating P/L

60,773

-27,577

 

      RECURRING PROFIT

630,548

336,198

　

      NET PROFIT

534,088

268,400

BALANCE SHEET

 

 

 

 

  Cash

　

1,279,024

1,119,902

 

  Receivables

 

787,691

883,476

 

  Inventory

 

899,813

935,629

 

  Securities, Marketable

　

　

 

  Other Current Assets

1,723,519

1,674,717

 

      TOTAL CURRENT ASSETS

4,690,047

4,613,724

 

  Property & Equipment

1,939,356

2,096,663

 

  Intangibles

 

594,994

616,665

 

  Investments, Other Fixed Assets

4,346,477

4,302,064

 

      TOTAL ASSETS

11,570,874

11,629,116

 

  Payables

 

691,520

802,464

 

  Short-Term Bank Loans

1,094,740

1,066,344

 

　

 

　

　

 

  Other Current Liabs

1,781,932

1,550,322

 

      TOTAL CURRENT LIABS

3,568,192

3,419,130

 

  Debentures

 

　

　

 

  Long-Term Bank Loans

2,043,240

2,313,035

 

  Reserve for Retirement Allw

　

　

 

  Other Debts

　

1,376,530

1,440,520

 

      TOTAL LIABILITIES

6,987,962

7,172,685

 

      MINORITY INTERESTS

 

 

 

Common stock

86,067

86,067

 

Additional paid-in capital

172,529

172,529

 

Retained earnings

5,666,539

5,304,473

 

Evaluation p/l on investments/securities

　

　

 

Others

 

(1,316,113)

(1,034,909)

 

Treasury stock, at cost

(26,110)

(71,730)

 

      TOTAL S/HOLDERS` EQUITY

4,582,912

4,456,430

　

      TOTAL EQUITIES

11,570,874

11,629,116

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

31/03/2011

31/03/2010

 

Cash Flows from Operating Activities

　

1,070,837

1,544,212

 

Cash Flows from Investment Activities

-731,390

-595,751

 

Cash Flows from Financing Activities

-100,416

-559,244

　

Cash, Bank Deposits at the Term End

　

1,279,024

1,119,902

ANALYTICAL RATIOS            Terms ending:

31/03/2011

31/03/2010

 

 

Net Worth (S/Holders' Equity)

4,582,912

4,456,430

 

 

Current Ratio (%)

131.44

134.94

 

 

Net Worth Ratio (%)

39.61

38.32

 

 

Recurring Profit Ratio (%)

7.06

3.92

 

 

Net Profit Ratio (%)

5.98

3.13

 

 

Return On Equity (%)

11.65

6.02

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.53.58

UK Pound

1

Rs.82.97

Euro

1

Rs.69.89

 

 

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

----

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%)

 

 

 

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.