MIRA INFORM REPORT

 

 

 

 

Report Date :

11.04.2012

 

IDENTIFICATION DETAILS

 

Name :

HANWA CO LTD

 

 

Registered Office :

4-3-9 Fushimimachi Chuoku Osaka 541-8585

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2010

 

 

Date of Incorporation :

April 1947

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Import, Export, Wholesale of steel products, nonferrous metals, foods, chemicals, petroleum products, machinery, lumber. 

 

 

No. of Employees :

2,025

 

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

 

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 – March 31st, 2012

 

Country Name

Previous Rating

                   (31.12.2011)                  

Current Rating

(31.03.2012)

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

 

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

 

*.. The given address is its Tokyo Head Office; the registered and the main office is as captioned.

 

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

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 9)

 

 

OVERSEAS   

 

N America (6), Asia (12), China (9), Europe & Mid East (9)

 

 

CHIEF EXEC 

 

SHUJI KITA, PRES & CEO

 

Yen Amount:     In million Yen, unless otherwise stated

 

SUMMARY

 

FINANCES        FAIR     A/SALES          Yen 1,116,628 M

PAYMENTS      REGULAR         CAPITAL           Yen 45,651 M

TREND             SLOW              WORTH            Yen 106,855 M

STARTED         1947     EMPLOYES      2,025

 

 

COMMENT    

 

TRADING HOUSE SPECIALIZING IN STEEL PRODUCTS. 

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY  BUSINESS ENGAGEMENTS.

                       

 

                        Forecast (or estimated) figures for 31/03/2011 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. .  The company plans to boost annual production capacity by 50% as early as spring 2011, after taking in demand for automobiles and four-wheel vehicles and electric machinery.  It will continuously acquire several companies, including a long-established steel processing company at home, to secure skilled workers.

           

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2010 fiscal term amounted to Yen 1,116,628 million, a 27.5% down from Yen 1,539,281 million in the previous term.  Demand for steel markets slumped as a result of the slowdown in the global economy since the financial crisis that began in 2008.  With signs of economic recovery nowhere in sight, this fiscal year bean under especially adverse conditions.  In the first half of the term, the firm’s business experienced weakness due to inventory adjustment in response to shrinking demand and the slumping market for steel/steel products.  Automobile exports dropped and inventories of finished vehicles increased.  Consumer spending cooled and mfrs cut output while postponing or cancelling capital expenditures.  By Divisions, Steel down 30.9% to Yen 606,205 million; Metal Raw Materials down 44.8% to Yen 86,081 million; Nonferrous Metals up 1.9% to Yen 52,823 million; Foods down 11.8% to Yen 72,557 million; Petroleum & Chemicals down 20.2% to Yen 255,867 million, as oil prices declined and decreased demand for fuel oils from mfg industries.  The recurring profit was posted at Yen 9,412 million and the net profit at Yen 11,579 million, respectively, compared with Yen 15,007 million recurring profit and Yen 5,997 million net profits, respectively, a year ago. 

 

(Apr/Sept/2010 results): sales Yen 647,172 million (up 21.7%), operating profit Yen 6,748 million (up 18.2%), recurring profit Yen 7,360 million (up 43.2%), net profit Yen 3,931 million (up 54.2%).  (% compared with the corresponding period a year ago).  Global demand for steel & steel products recovered.  

 

For the current term ending Mar 2011 the recurring profit is projected at Yen 12,000 million and the net profit at Yen 6,800 million, respectively, on a 19.4% rise in turnover, to Yen 1,333,000 million.  In the steel market, demand for construction materials will remain downtrend, but demand for automobiles will be risk, and that for construction machinery will pick up drastically.  Demand for copper in China will remain strong.  Prices of foodstuff will inch up.  Sales of petroleum & chemicals will hold firm.  Operating profit is likely to increase.  Steel plate processing will start up normal operations in Indonesia. 

 

The financial situation is considered maintained FAIR and good for ORDINARY business engagements. 

 

 

REGISTRATION

 

Date Registered:  Apr 1947

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 (11.2), Master Trust Bank of Japan T (6.4), SMBC (3.6), Company’s Treasury Stock (2.0), Employees’ S/Holding Assn (1.9), Customers’ S/Holding Assn (1.8), Daiichi Life Ins (1.2), Chase London SL Omnibus Acct (1.1), Nippon Metal Ind (1.1), Trust & Custody Services Inv Acct (0.9); foreign owners (15.3)

 

No. of shareholders: 12,814

 

Listed on the S/Exchange (s) of: Tokyo, Osaka

 

Managements: Shuji Kita, pres & CEO; Hironari Furukawa, v 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; 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 (54%): steel bars, shapes, construction materials, wire rods, steel sheets, other;            

 

Non-Ferrous

Metal Div (5%): aluminum, copper, nickel, chromium, other;

 

Steel Materials Div (8%); forged iron, cast iron, special steel wires, screws;

 

Foods Div (6%): prawns, crab, other seafoods;

 

Petroleum & Chemicals Div (23%): fuels, petrochemicals, other;

 

Other Div (4%): 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)

 

FINANCES: (Consolidated in million yen)

 

　

　

Terms Ending:

31/03/2010

31/03/2009

INCOME STATEMENT

 

 

 

  Annual Sales

　

1,116,628

1,539,281

 

  Cost of Sales

1,076,039

1,491,569

 

      GROSS PROFIT

40,589

47,712

 

  Selling & Adm Costs

29,169

30,260

 

      OPERATING PROFIT

11,420

17,451

 

  Non-Operating P/L

-2,008

-1,444

 

      RECURRING PROFIT

9,412

16,007

　

      NET PROFIT

11,579

5,997

BALANCE SHEET

 

 

 

 

  Cash

　

24,669

35,200

 

  Receivables

 

214,416

233,282

 

  Inventory

 

72,352

90,765

 

  Securities, Marketable

　

　

 

  Other Current Assets

21,729

26,305

 

      TOTAL CURRENT ASSETS

333,166

385,552

 

  Property & Equipment

46,299

46,407

 

  Intangibles

 

753

733

 

  Investments, Other Fixed Assets

63,226

46,687

 

      TOTAL ASSETS

443,444

479,379

 

  Payables

 

134,800

130,720

 

  Short-Term Bank Loans

49,725

89,362

 

　

 

　

　

 

  Other Current Liabs

30,564

32,405

 

      TOTAL CURRENT LIABS

215,089

252,487

 

  Debentures

 

　

10,000

 

  Long-Term Bank Loans

114,355

115,150

 

  Reserve for Retirement Allw

18

25

 

  Other Debts

　

7,127

6,804

 

      TOTAL LIABILITIES

336,589

384,466

 

      MINORITY INTERESTS

 

 

 

Common stock

45,651

45,651

 

Additional paid-in capital

4

4

 

Retained earnings

64,301

54,650

 

Evaluation p/l on investments/securities

889

(3,213)

 

Others

 

(2,575)

(1,425)

 

Treasury stock, at cost

(1,415)

(755)

 

      TOTAL S/HOLDERS` EQUITY

106,855

94,912

　

      TOTAL EQUITIES

443,444

479,379

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

31/03/2010

31/03/2009

 

Cash Flows from Operating Activities

　

46,250

-5,742

 

Cash Flows from Investment Activities

-12,991

-19,535

 

Cash Flows from Financing Activities

-43,669

46,591

　

Cash, Bank Deposits at the Term End

　

24,514

35,046

ANALYTICAL RATIOS            Terms ending:

31/03/2010

31/03/2009

 

 

Net Worth (S/Holders' Equity)

106,855

94,912

 

 

Current Ratio (%)

154.90

152.70

 

 

Net Worth Ratio (%)

24.10

19.80

 

 

Recurring Profit Ratio (%)

0.84

1.04

 

 

Net Profit Ratio (%)

1.04

0.39

 

 

Return On Equity (%)

10.84

6.32

 

 

 

 

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.51.20

UK Pound

1

Rs.81.50

Euro

1

Rs.67.15

 

 

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.