MIRA INFORM REPORT

 

 

Report Date :

04.03.2011

 

IDENTIFICATION DETAILS

 

Correct Name :

HONDA ENGINEERING CO LTD

 

 

Registered Office :

6-1 Hagadai Hagacho Hagagun Tochigi-Pref 321-3325

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2010

 

 

Date of Incorporation :

September, 1970

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Engineering Company for Automobiles, Motorcycles, Power Products, Other Vehicles of Honda Motor.

 

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 1,778.5

 

 

Status :

Satisfactory

 

 

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 – June 30, 2010

 

Country Name

Previous Rating

                   (01.04.2010)                  

Current Rating

(30.06.2010)

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 ENGINEERING CO LTD

 

 

REGD NAME 

 

Honda Engineering KK

 

 

MAIN OFFICE

 

6-1 Hagadai Hagacho Hagagun Tochigi-Pref 321-3325 JAPAN

Tel: 028-677-5511    

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

E-mail:             (thru the URL)   

 

 

ACTIVITIES  

 

Engineering company of vehicles

 

 

BRANCHES   

 

Nil

 

 

FACTORIES  

 

At the caption address

 

 

OFFICER(S)  

 

EIJI OOKAWARA, PRES                                   Tomoyuki Sawada, mgn dir

Yosuke Narita, mgn dir                           Tatsuo Nagamitsu, mgn dir

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

 

 

SUMMARY    

 

FINANCES                    FAIR                 A/SALES          Yen 71,577 M

PAYMENTS                  REGULAR         CAPITAL           Yen 3,600 M

TREND             SLOW              WORTH            Yen 11,428 M

STARTED                     1970                 EMPLOYES      2,695

 

 

COMMENT    

 

ENGINEERING FIRM WHOLLY OWNED BY HONDA MOTOR CO LTD. 

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS

 

MAX CREDIT LIMIT: YEN 1,778.5 MILLION, 30 DAYS NORMAL TERMS

 

 

HIGHLIGHTS

           

The subject company was established on the basis of mfg/engineering division separated from Honda Motor Co Ltd (See REGISTRATION).  This is an engineering firm specializing for automobiles, motorcycles, power products, other vehicles: establishment of production systems and production lines and development of machine tools, die molds, other.  Products are wholly supplied to Honda Motor and its group firms.

 

 

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 71,577 million, a 19% down from Yen 88,085 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 earnings & profits in Yen terms.  The recurring profit was posted at Yen 1,625 million and the net profit at Yen 886 million, respectively, compared with Yen 2,857 million recurring profit and Yen 1,576 million net profits, respectively, a year ago.  .

 

For the current term ending Mar 2011 the recurring profit is projected at Yen 1,700 million and the net profit at Yen 900 million, respectively, on a 5% rise in turnover, to Yen 75,000 million.  Global sales of four-wheeled cars are targeted at 3.61 million units, up 6% from the preceding term.  Those of motorcycles will increase by 20%, led by sales in Asia, as commended by the parent, Honda Motor Co. 

           

The financial situation is considered FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 1,778.5 million, on 30 days normal terms. 

 

REGISTRATION

 

Date Registered : Sept 1970

Regd No.                       : (Tochigi-Tochigi) 009891

Legal Status                  : Limited Company (Kabushiki Kaisha)

Authorized                     : 28.8 million shares

Issued                           : 7.2 million shares

Sum                             : Yen 3,600 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: Engineering company for automobiles, motorcycles, power products, other vehicles of Honda Motor Co make: establishment of production systems & production lines and development of machine tools, die molds, equipment, other (--100%).

 

Clients: [Carmakers, mfrs, wholesalers] Honda Motor Co, Honda R&D Co, Honda Trading, other

No. of accounts: Limited to Honda group firms

Domestic areas of activities: Nationwide

Suppliers: [Mfrs, wholesalers] Mizutani Seiki Ind, Yskawa Mechatrec Corp, Honda Trading, Aida Trading, Hokuto Corp, Marubeni Information Systems, Fanuc Ltd, Kimura Chuzosho, other

 

Payment record: Regular

 

 

Location

 

Business area in Hagagun, Tochigi-Pref.  Office premises at the caption address are owned and maintained satisfactorily.

 

 

Bank References

 

MUFG (H/O)

Saitama Resona Bank (Shin-Sayama)

Relations: Satisfactory

 

 

FINANCES

 

(In Million Yen)

       Terms Ending:

31/03/2011

31/03/2010

31/03/2009

31/03/2008

Annual Sales

　

75,000

71,577

88,085

94,528

Recur. Profit

　

1,700

1,625

2,857

　

Net Profit

　

900

886

1,576

329

Total Assets

　

　

39,250

49,708

　

Current Assets

　

　

21,390

21,087

　

Current Liabs

　

　

20,820

32,222

　

Net Worth

　

　

11,428

10,542

　

Capital, Paid-Up

　

　

3,600

3,600

3,600

Div.P.Share(¥)

　

　

0.00

0.00

0.00

<Analytical Data>

(%)

(%)

(%)

(%)

    S.Growth Rate

4.78

-18.74

-6.82

6.40

    Current Ratio

 

..

102.74

65.44

..

    N.Worth Ratio

..

29.12

21.21

..

    R.Profit/Sales

 

2.27

2.27

3.24

..

    N.Profit/Sales

1.20

1.24

1.79

0.35

    Return On Equity

..

7.75

14.95

..

 

Notes: Financials are consolidated by the parent, Honda Motor Co, and disclosed in digested form.

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.44.96

UK Pound

1

Rs.73.37

Euro

1

Rs.62.33

 

 

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 Company

----

 

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.