MIRA
INFORM REPORT
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Report Date : |
17.06.2011 |
IDENTIFICATION DETAILS
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Name : |
HANWA CO LTD |
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Registered Office : |
4-3-9 Fushimimachi Chuoku Osaka 541-8585 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2011 |
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Year of Establishment : |
April
1947 |
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Com. Reg. No.: |
(Osaka-Chuoku) 077530 |
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Legal Form : |
Limited Company |
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Line of Business : |
Import, export, wholesale of steel products, nonferrous metals, foods, chemicals, petroleum products, machinery, lumber, other. |
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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Maximum Credit Limit : |
Yen 23,363.9 Million |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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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 – March 31st, 2011
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Country Name |
Previous Rating (31.12.2010) |
Current Rating (31.03.2011) |
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Japan |
A1 |
A1 |
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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 |
Name and address
HANWA CO LTD
REGD NAME: Hanwa
Kogyo KK
MAIN OFFICE: 4-3-9
Fushimimachi Chuoku Osaka 541-8585 JAPAN
Tel: 06-6206-3233 Fax: 06-6206-3305
E-Mail address: info@hanwa.co.jp
ACTIVITIES
Import, export, wholesale
of steel products, nonferrous metals, foods, chemicals,
petroleum
products, machinery, lumber, other.
BRANCHES
Tokyo, Nagoya,
Sendai, Kitakyushu, Sapporo, Sendai, Fukuoka, other (Tot 13)
OVERSEAS
N America (6),
Asia (13), China (10), Europe & Mid East (8)
CHIEF EXEC
HIRONARI FURUKAWA,
PRES & CEO
Yen Amount: In million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 1,396,103 M
PAYMENTS REGULAR CAPITAL Yen 45,651 M
TREND SLOW WORTH Yen
110,458 M
STARTED 1947 EMPLOYES 2,060
COMMENT
TRADING HOUSE SPECIALIZING IN STEEL PRODUCTS.
FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS
ENGAGEMENTS.
MAX CREDIT LIMIT:
YEN 23,363.9 MILLION, 30 DAYS NORMAL TERMS.
Forecast (or estimated) figures for 31/03/2012 fiscal term
HIGHLIGHTS
This is a time-honored trading house
originating in Osaka specializing in steel products as mainline. Aiming to become general trading firm by
boosting seafood imports. Advanced into
electronics field. OA equipment
developed in-house is growing rapidly.
Strong and active in China operations, having 9 offices in China. Expanding into general trading house
operations from the original steel products business. Coil center in San Diego (US), acquired in
Sept 2009, expanding sales of products for microwave ovens and flat-screen, TVs
in Mexico, thanks to customs-free advantage.
In China, developing new markets thru units in inland provinces, including
Chorigging. In Apr 2008, established
Hanwa India Private Ltd in Mumbai, with office in New Delhi to focus in
automobiles, shipbuilding, gas & petroleum, energy markets in India. . It
will increase steel materials in Thailand 50% by Sept 2011 in view of continued
sales growth, and plans sales expansion for the automobile and consumer
electronics.
FINANCIAL INFORMATION
The sales volume for Mar/2011 fiscal
term amounted to Yen 1,396,103 million, a 25.0% up from Yen 1,116,628 million
in the previous term. Transportation volume
increased, because the operational status of users had improved. Orders for plywood and construction materials
doubled in Mar from Feb as affected by the North Japan Earthquake and are still
climbing, as the surge in demand continues to outpace shipments. The quake & tsunami affected at least
five plywood factories in eastern Japan, including facilities operated by
Tokyo-based Seihoku Corp. Hanwa
responded to the shortage of materials by expanding its imports of Malaysian
plywood. The recurring profit was posted
at Yen 13,490 million and the net profit at Yen 5,793 million, respectively,
compared with Yen 9,412 million recurring profit and Yen 11,579 million net
profit, respectively, a year ago.
For the current term ending Mar 2012 the
recurring profit is projected at Yen 15,000 million and the net profit at Yen
9,000 million, respectively, on a 6.4% rise in turnover, to Yen 1,485,000
million. Steel sales for automobiles
should be robust. Sales to emerging
nations will grow. Steel prices should
rise, reflecting soaring material steel prices.
Fish demand will be solid. The
firm comments, however, that: the future is uncertain due to the Great East
Japan Earthquake; We estimate supply and demand is sluggish in the first half;
Full scale recovery from quake damage and demand for reconstruction after
disaster is expected after the second half of Fiscal 2011.
The financial situation is considered FAIR
and good for ORDINARY business engagements.
Max credit limit is estimated at Yen 23,363.9 million, on 30 days normal
terms.
REGISTRATION
Date Registered: Apr
1947
Regd No.:
(Osaka-Chuoku) 077530
Legal Status: Limited Company (Kabushiki Kaisha)
Authorized: 570 million shares
Issued:
211,663,200 shares
Sum: Yen 45,651 million
Major
shareholders (%): Japan Trustee Services Bank T (9.4), Master Trust Bank of Japan T
(4.9), SMBC (3.6), Customers’ S/Holding Assn (2.2), Trust & Custody
Services Inv Acct (2.2), Employees’ S/Holding Assn (2.1), Company’s Treasury
Stock (2.0), Showa Fidelity Low Price Stock 350 (1.6), Melon Bank Melon Omnibus
US Pension 263 (1.2); foreign owners16.4)
No. of shareholders: 12,331
Listed on the S/Exchange (s) of: Tokyo, Osaka
Managements: Shuji Kita, ch; Hironari
Furukawa, pres; Tetsuro Akimoto, s/mgn dir; Yoshifumi Nishi, mgn dir; Takuji
Kita, mgn dir; Hideo Kawanishi, mgn dir; Hiroshi Serizawa, mgn dir; Hiroshi
Ebihara, mgn dir; Akihiko Ogasawara, mgn dir; Osamu Seki, dir; Kazuhisa Majime,
dir; Masataka Toyoda, dir
Nothing detrimental is known as to the
commercial morality of executives.
Related
companies: Hanwa Logistics, Hanwa (Hong Kong) Ltd, Halows Co, other
OPERATION
Activities: A trading house
for import, export and wholesale of:
(Sales
Breakdown by Divisions)
Steel Div (48%): steel bars,
shapes, construction materials, wire rods, steel sheets, other;
Non-Ferrous Metal
Div (4%): aluminum, copper, nickel, chromium, other;
Steel
Materials Div (9%); forged iron, cast iron, special steel wires,
screws;
Foods
Div (6%): prawns, crab, other seafoods;
Petroleum
& Chemicals Div (26%): fuels, petrochemicals, other;
Other
Div (7%): lumber, plywood, logs, building materials, other.
Overseas
sales ratio (25.3%): Asia (China, Thailand, Korea, Singapore) (22.7%),
other
region (USA & Germany) (2.6%).
Clients: [Mfrs,
wholesalers, general contractors] Obayashi Corp, Takenaka Corp, Shimizu Corp, Sumitomo Metal Ind, Oji Paper Mills,
Osaka Uoichiba, NYK Lines, K Lines, Daewoo Shipbuilding & Marine
Engineering, Seojoo Global Corporation, Mitsui-OSK Lines, Nippon Metal Ind,
Idemitsu Kosan, other.
No. of accounts:
1,000
Domestic areas of
activities: Nationwide
Suppliers: [Mfrs, wholesalers] Nippon Steel, Sumitomo
Metal Ind, Nisshin Steel, Japan
Energy, Nippon Oil, Kobe Steel, JFE Steel,
China Marine Bunker, Yamato Steel, Nisshin Steel, Kobe Steel, Nakayama Steel
Works, Double Rich Ltd, Aegean Marine Petroleum, other.
Imports from; USA, Canada, Chile, Finland,
Sweden, Norway, Russia, China, Indonesia, other
Payment record: Regular
Location: Business area in
Osaka. Office premises at the caption
address are owned and maintained satisfactorily.
Bank References:
SMBC (Tokyo-Chuo)
Mizuho Corporate
Bank (H/O)
Relations: Satisfactory
FINANCES
(In
Million Yen)
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FINANCES: (Consolidated
in million yen) |
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Terms Ending: |
31/03/2011 |
31/03/2010 |
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INCOME STATEMENT |
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Annual Sales |
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1,396,103 |
1,116,628 |
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Cost of Sales |
1,352,359 |
1,076,039 |
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GROSS PROFIT |
43,744 |
40,589 |
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Selling & Adm Costs |
29,890 |
29,169 |
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OPERATING PROFIT |
13,853 |
11,420 |
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Non-Operating P/L |
-363 |
-2,008 |
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RECURRING PROFIT |
13,490 |
9,412 |
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NET PROFIT |
5,793 |
11,579 |
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BALANCE SHEET |
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Cash |
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20,707 |
24,669 |
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Receivables |
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274,348 |
214,416 |
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Inventory |
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101,350 |
72,352 |
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Securities, Marketable |
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Other Current Assets |
26,799 |
21,729 |
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TOTAL CURRENT ASSETS |
423,204 |
333,166 |
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Property & Equipment |
47,041 |
46,299 |
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Intangibles |
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684 |
753 |
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Investments, Other Fixed Assets |
61,868 |
63,226 |
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TOTAL ASSETS |
532,797 |
443,444 |
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Payables |
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156,546 |
134,800 |
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Short-Term Bank Loans |
90,942 |
49,725 |
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Other Current Liabs |
40,585 |
30,564 |
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TOTAL CURRENT LIABS |
288,073 |
215,089 |
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Debentures |
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10,000 |
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Long-Term Bank Loans |
115,075 |
114,355 |
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Reserve for Retirement Allw |
133 |
18 |
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Other Debts |
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9,057 |
7,127 |
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TOTAL LIABILITIES |
422,338 |
336,589 |
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MINORITY INTERESTS |
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Common
stock |
45,651 |
45,651 |
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Additional
paid-in capital |
4 |
4 |
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Retained
earnings |
67,608 |
64,301 |
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Evaluation
p/l on investments/securities |
952 |
889 |
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Others |
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(2,334) |
(2,575) |
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Treasury
stock, at cost |
(1,423) |
(1,415) |
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TOTAL S/HOLDERS` EQUITY |
110,458 |
106,855 |
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TOTAL EQUITIES |
532,797 |
443,444 |
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CONSOLIDATED CASH FLOWS |
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Terms ending: |
31/03/2011 |
31/03/2010 |
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Cash
Flows from Operating Activities |
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-46,948 |
46,250 |
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Cash
Flows from Investment Activities |
-7,610 |
-12,991 |
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Cash Flows
from Financing Activities |
51,271 |
-43,669 |
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Cash,
Bank Deposits at the Term End |
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20,586 |
24,514 |
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ANALYTICAL RATIOS Terms ending: |
31/03/2011 |
31/03/2010 |
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Net
Worth (S/Holders' Equity) |
110,458 |
106,855 |
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Current
Ratio (%) |
146.91 |
154.90 |
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Net
Worth Ratio (%) |
20.73 |
24.10 |
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Recurring
Profit Ratio (%) |
0.97 |
0.84 |
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Net
Profit Ratio (%) |
0.41 |
1.04 |
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Return
On Equity (%) |
5.24 |
10.84 |
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FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.44.90 |
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|
1 |
Rs.72.54 |
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Euro |
1 |
Rs.63.39 |
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.