MIRA INFORM REPORT
|
Report Date : |
17.01.2012 |
IDENTIFICATION DETAILS
|
Name : |
HONDA
TRADING ASIA CO.,
LTD. |
|
|
|
|
Registered Office : |
3rd Floor, Indosuez House, 152 Wireless Road, Lumpini, Pathumwan, Bangkok 10330 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.03.2011 |
|
|
|
|
Date of Incorporation : |
18.03.1991 |
|
|
|
|
Com. Reg. No.: |
0105534025726 |
|
|
|
|
Legal Form : |
Private
Limited Company |
|
|
|
|
Line of Business : |
Importer, Distributor and Exporter of Steels |
|
|
|
|
No. of Employees
: |
200 |
RATING & COMMENTS
|
MIRA’s Rating : |
A |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Status : |
Good |
|
|
|
|
Payment
Behaviour : |
No Complaints |
|
|
|
|
Litigation : |
Clear |
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) |
|
Thailand |
b1 |
b1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
Company name
HONDA TRADING ASIA
CO., LTD.
SUMMARY
BUSINESS
ADDRESS : 3rd FLOOR, INDOSUEZ
HOUSE,
152
WIRELESS
ROAD, LUMPINI,
PATHUMWAN,
BANGKOK 10330
TELEPHONE : [66] 2651-4170
FAX :
[66] 2651-4191-3
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 1991
REGISTRATION
NO. : 0105534025726
CAPITAL REGISTERED : BHT. 112,000,000
CAPITAL PAID-UP : BHT.
112,000,000
SHAREHOLER’SD PROPORTION : THAI :
5.46%
JAPANESE :
94.54%
FISCAL YEAR CLOSING DATE : MARCH
31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR. HIDEAKI MURAI,
JAPANESE
PRESIDENT
NO.
OF STAFF : 200
LINES
OF BUSINESS : STEELS
IMPORTER, DISTRIBUTOR
AND EXPORTER
CORPORATE PROFILE
OPERATING
TREND : STABLE
PRESENT
SITUATION : OPERATING NORMALLY
REPUTATION : GOOD
WITH NORMAL BUSINESS
ENGAGEMENT
MANAGEMENT
STANDARD : MANAGEMENT WITH
GOOD PERFORMANCE
HISTORY
The subject was
established on March
18, 1991 as a
private limited company under
the originally registered
name “Honda Trading
[Thailand] Co., Ltd.” by Thai
and Japanese groups. On
March 19, 2009,
its registered name
was changed to
HONDA TRADING ASIA CO., LTD. Its objective is engaged in steel trader. It currently
employs approximately 200
staff. The subject is a
subsidiary of Honda
Trading Corporation, which
is a member
of Honda Motor
Company Limited, in Japan.
The subject’s registered address is 3rd Flr., Indosuez Building, 152 Wireless Rd.,
Lumpini, Pathumwan, Bangkok 10330,
and this is
the subject’s current
operation address.
THE BOARD OF DIRECTOR
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Hideaki Murai |
[x] |
Japanese |
52 |
|
Mr. Mitsunari Takano |
[x] |
Japanese |
57 |
|
Mr. Tadashi Matsumoto |
|
Japanese |
60 |
AUTHORIZED PERSON
One of the
mentioned directors [x] can sign
on behalf of
the subject with
company’s affixed.
MANAGEMENT
Mr. Hideaki Murai is the
President.
He is Japanese
nationality with the
age of 52
years old.
BUSINESS OPERATIONS
The subject
is engaged in
international trading business,
to import, distribute
and export various
kinds of products,
such as steels,
aluminium, plastic, machinery
and spare parts
for automotive, machinery,
motorcycle and power
plant industries.
PURCHASE
The
products are purchased
from suppliers both
domestic and overseas,
mainly in Japan,
Republic of China
and Germany.
MAJOR
SUPPLIERS
Honda
Trading Corporation : Japan
Thai
Metal Trade Public
Company Limited : Thailand
Sahaviriya
Steel Industry Public
Company Limited :
Thailand
Bangkok
Steel Industry Public
Company Limited :
Thailand
SALES
99% of the
products is sold
and supplied to
Honda group of
companies both local and
overseas, such as
Vietnam, Pakistan, Taiwan,
Philippines, India, Malaysia
and Europe, the remaining
1% is to
general customers.
LITIGATION
Bankruptcy
and Receivership
There are no
litigation on bankruptcy
and receivership cases
filed against the
subject found at
Legal Execution Department
for the past
five years.
Others
There are no
legal suits filed
against the subject
for the past
two years.
CREDIT
Sales are by
cash or on
the credits term
of 30-60 days.
Local bills are
paid by cash
or on the credits term
of 30-60 days.
Imports are by T/T.
Exports are against
T/T.
BANKING
Bangkok
Bank Public Co.,
Ltd.
Bank
of Tokyo-Mitsubishi UFJ
Ltd.
EMPLOYMENT
The
subject employs approximately
200 staff.
LOCATION
DETAILS
The premise is
rented for administrative office
at the heading
address. Premise is
located in a prime
commercial area.
Branch
office : [Thailand / Overseas]
- 47
Moo 7, Poochaosaingprai Rd.,
Samrong, Phrapradaeng, Samutprakarn.
- 102/1
Moo 1, Wat
Dawadueng Rd., Bangkadi, Muang,
Pathumthani.
- Suite
605-B The Forum
Khayaban-E-Jamai, Block-9, Clifton
Karachi-75600 Pakistan.
- 49
Moo 4 T. Banchang, A. Uthai, Ayutthaya. [temporalily closed because
of flood cricis]
- Hacpl-Desk, 43-KM,
Mutan Road, Manga
Mandi, Lahore 54300,
Pakistan.
REMARK
MAXIMUM
CREDIT SHOULD BE
GRANTED AT EUR
10,000,000.
COMMENT
The subject was formed
in 1991 as an international
steel trading for
automotive and machinery
industries. The products
are served mainly
to automobile industry
both local and
overseas. Subject’s operating
performance had significantly
grown in the past
several years.
However,
since the last
quarter of 2011 Honda Group
in Thailand has
been affected from
massive floods which
has slowed down
demand of steel
for automobile industry.
Honda automobile manufacture
in Rojana Industrial
Estate was inundated
for over two months
and currently is
under restoration. It
is expected to be ready
for production in the next few
months.
FINANCIAL INFORMATION
The
capital was registered
at Bht. 12,000,000 divided into
120,000 shares of
Bht. 100 each.
On
April 23, 1999,
the capital was
increased to Bht. 112,000,000, divided
into 1,120,000 shares of
Bht. 100 each
with fully paid.
THE SHAREHOLDERS
LISTED WERE : [as at
July 20, 2011]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Honda Trading Corporation Nationality: Japanese Address : 1-8-2
Marunokuji, Chiyodaku, Tokyo, Japan |
1,058,800 |
94.54 |
|
AP Honda Co.,
Ltd. Nationality: Thai Address : 149
Old Railway Rd.,
Samrongtai, Phrapradaeng, Samutprakarn |
30,600 |
2.73 |
|
Honda Automobile [Thailand]
Co., Ltd. Nationality: Thai Address : 49
Moo 9, T. Thanu,
A. Uthai, Ayutthaya |
30,600 |
2.73 |
Total Shareholders : 3
Share Structure [as
at July 20,
2011]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
2 |
61,200 |
5.46 |
|
Foreign - Japanese |
1 |
1,058,800 |
94.54 |
|
Total |
3 |
1,120,000 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Mr. Ekasit Chuthamsathit No.
4195
BALANCE SHEET [BAHT]
The
latest financial figures
published for March
31, 2011 &
2010 were:
ASSETS
|
Current Assets |
2011 |
2010 |
|
|
|
|
|
Cash and Cash Equivalent |
103,142,772 |
70,409,657 |
|
Trade Accounts Receivable |
6,740,964,755 |
5,379,600,542 |
|
Inventories |
4,422,622,427 |
2,387,967,829 |
|
Refundable Value Added
Tax |
171,591,598 |
138,061,831 |
|
Other Current Assets |
163,414,047 |
147,321,705 |
|
|
|
|
|
Total Current Assets
|
11,601,735,599 |
8,123,361,564 |
|
|
|
|
|
Long-term Investment |
43,717,628 |
43,717,628 |
|
Fixed Assets |
255,863,528 |
260,957,289 |
|
Intangible Assets |
42,083,193 |
26,440,217 |
|
Other Assets |
7,038,568 |
7,843,040 |
|
Total Assets |
11,950,438,516 |
8,462,319,738 |
LIABILITIES &
SHAREHOLDERS’ EQUITY [BAHT]
|
Current
Liabilities |
2011 |
2010 |
|
|
|
|
|
Short-term Loan from Financial
Institution |
3,820,000,000 |
2,150,000,000 |
|
Trade Accounts Payable |
3,943,304,282 |
3,443,510,817 |
|
Advance Income from Customer |
135,197,697 |
62,254,651 |
|
Accrued Income Tax |
318,665,161 |
- |
|
Accrued Expenses |
120,811,706 |
69,101,721 |
|
Other Current Liabilities |
73,011,284 |
63,393,914 |
|
|
|
|
|
Total Current Liabilities |
8,410,990,130 |
5,788,261,103 |
|
|
|
|
|
Long-term Payable from Related Company |
300,000,000 |
- |
|
Total Liabilities |
8,710,990,130 |
5,788,261,103 |
|
|
|
|
|
Shareholders’ Equity |
|
|
|
|
|
|
|
Share capital : Baht 100
par value authorized, issued
and fully paid share
capital 1,120,000 shares |
112,000,000 |
112,000,000 |
|
|
|
|
|
Capital Paid |
112,000,000 |
112,000,000 |
|
Statutory Reserve |
11,200,000 |
11,200,000 |
|
Retained Earning-
Unappropriated |
3,116,248,386 |
2,550,858,635 |
|
Total Shareholders' Equity |
3,239,448,386 |
2,674,058,635 |
|
Total Liabilities & Shareholders' Equity |
11,950,438,518 |
8,462,319,738 |
PROFIT & LOSS ACCOUNT
|
Revenue |
2011 |
2010 |
|
|
|
|
|
Sales & Services |
35,598,703,661 |
26,705,354,519 |
|
Interest Income |
7,523,601 |
182,903 |
|
Dividend Income |
3,635,213 |
2,844,722 |
|
Gain on Exchange
Rate |
74,627,886 |
75,721,279 |
|
Other Income |
88,613,645 |
101,066,373 |
|
Total Revenues |
35,773,104,006 |
26,885,169,796 |
|
Expenses |
|
|
|
|
|
|
|
Cost of Goods
Sold & Services |
33,594,973,971 |
25,342,452,530 |
|
Selling Expenses |
548,110,871 |
369,404,556 |
|
Administrative Expenses |
283,258,591 |
307,940,239 |
|
Total Expenses |
34,426,343,433 |
26,019,797,325 |
|
|
|
|
|
Profit before Financial Cost & Income
Tax |
1,346,760,573 |
865,372,471 |
|
Financial Cost |
[55,940,276] |
[63,375,124] |
|
Profit before Income Tax |
1,290,820,297 |
801,997,347 |
|
Income Tax |
[400,305,746] |
[151,753,280] |
|
|
|
|
|
Net Profit / [Loss] |
890,514,551 |
650,244,067 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2011 |
2010 |
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
CURRENT RATIO |
TIMES |
1.38 |
1.40 |
|
QUICK RATIO |
TIMES |
0.81 |
0.94 |
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
139.13 |
102.34 |
|
TOTAL ASSETS TURNOVER |
TIMES |
2.98 |
3.16 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
48.05 |
34.39 |
|
INVENTORY TURNOVER |
TIMES |
7.60 |
10.61 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
69.12 |
73.53 |
|
RECEIVABLES TURNOVER |
TIMES |
5.28 |
4.96 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
42.84 |
49.60 |
|
CASH CONVERSION CYCLE |
DAYS |
74.32 |
58.32 |
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
COST OF GOODS SOLD |
% |
94.37 |
94.90 |
|
SELLING & ADMINISTRATION |
% |
2.34 |
2.54 |
|
INTEREST |
% |
0.16 |
0.24 |
|
GROSS PROFIT MARGIN |
% |
6.12 |
5.78 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
3.78 |
3.24 |
|
NET PROFIT MARGIN |
% |
2.50 |
2.43 |
|
RETURN ON EQUITY |
% |
27.49 |
24.32 |
|
RETURN ON ASSET |
% |
7.45 |
7.68 |
|
EARNING PER SHARE |
BAHT |
795.10 |
580.58 |
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
DEBT RATIO |
TIMES |
0.73 |
0.68 |
|
DEBT TO EQUITY RATIO |
TIMES |
2.69 |
2.16 |
|
TIME INTEREST EARNED |
TIMES |
24.07 |
13.65 |
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
SALES GROWTH |
% |
33.30 |
|
|
OPERATING PROFIT |
% |
55.63 |
|
|
NET PROFIT |
% |
36.95 |
|
|
FIXED ASSETS |
% |
(1.95) |
|
|
TOTAL ASSETS |
% |
41.22 |
|
PROFITABILITY RATIO
|
Gross Profit Margin |
6.12 |
Deteriorated |
Industrial
Average |
13.24 |
|
Net Profit Margin |
2.50 |
Impressive |
Industrial
Average |
(2.98) |
|
Return on Assets |
7.45 |
Impressive |
Industrial
Average |
(0.31) |
|
Return on Equity |
27.49 |
Impressive |
Industrial
Average |
2.56 |
Gross Profit Margin used to assess a firm's financial health by
revealing the proportion of money left over from revenues after accounting for
the cost of goods sold. Gross profit margin serves as the source for paying additional
expenses and future savings. The company's figure is 6.12%. When compared with
the industry average, the ratio of the company was lower, indicated that
company was originated from the problems with control over its costs.
Net Profit Margin is the indicator of the company's efficiency in that
net profit takes into consideration all expenses of the company. A low profit
margin indicates a low margin of safety, higher risk that a decline in sales
will erase profits and result in a net loss. The company's figure is 2.5%,
higher figure when compared with those
of its average competitors in the same industry, indicated that business was an
efficient operator in a dominant position
within its industry.
Return on Assets measures how efficiently profits are being generated
from the assets employed in the business when compared with the ratios of firms
in a similar business. A low ratio in comparison with industry averages
indicates an inefficient use of business assets. Return on Assets ratio is
7.45%, higher figure when compared with those of its average competitors in the
same industry, indicated that business was an efficient profit in a dominant position within its industry.
Return on Equity indicates how profitable a company is by comparing its
net income to its average shareholders' equity, ROE measures how much the
shareholders earned for their investment in the company. Return on Equity ratio
is 27.49%, higher figure when compared with those of its average competitors in
the same industry, indicated that business was an efficient profit in a
dominant position within its industry.
Trend of the
average competitors in the same industry for last 5 years
Return on Assets Downtrend
Return on Equity Downtrend
LIQUIDITY RATIO
|
Current Ratio |
1.38 |
Deteriorated |
Industrial
Average |
23.00 |
|
Quick Ratio |
0.81 |
|
|
|
|
Cash Conversion Cycle |
74.32 |
|
|
|
The Current Ratio is to ascertain whether a company's short-term assets are
readily available to pay off its short-term liabilities. The company's figure
is 1.38 times in 2011, decreased from 1.4 times, then it is generally
considered to have good short-term financial strength. When compared with the
industry average, the ratio of the company was lower.
The Quick Ratio is a liquidity indicator that further refines the
current ratio by measuring the amount of the most liquid current assets there
are to cover current liabilities. The company's figure is 0.81 times in 2011, decreased
from 0.94 times, by excluding inventory, the company may have problems meeting
current liabilities.
The Cash Conversion Cycle measures the number of days a company's cash
is tied up in the production and sales process of its operations and the benefit
from payment terms from its creditors. It meant the company could survive when
no cash inflow was received from sale for 75 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE RATIO
|
Debt Ratio |
0.73 |
Acceptable |
Industrial
Average |
0.73 |
|
Debt to Equity Ratio |
2.69 |
Risky |
Industrial
Average |
2.26 |
|
Times Interest Earned |
24.07 |
Deteriorated |
Industrial
Average |
242.26 |
Debt to Equity Ratio a measurement of how much suppliers, lenders,
creditors and obligors have committed to the company versus what the
shareholders have committed. A lower the percentage means that the company is
using less leverage and has a stronger equity position.
Times Interest Earned measuring a company's ability to meet its debt
obligations. Ratio is 24.08 higher than 1, so the company can pay interest
expenses on outstanding debt.
Debt Ratio shows the proportion of a company's assets which are financed
through debt. The company's figure is 0.73 greater than 0.5, most of the
company's assets are financed through debt.
Trend of the
average competitors in the same industry for last 5 years
Debt Ratio Downtrend
Times Interest Earned Uptrend
ACTIVITY RATIO
|
Fixed Assets Turnover |
139.13 |
Deteriorated |
Industrial
Average |
4,879.85 |
|
Total Assets Turnover |
2.98 |
Impressive |
Industrial
Average |
2.40 |
|
Inventory Conversion Period |
48.05 |
|
|
|
|
Inventory Turnover |
7.60 |
Deteriorated |
Industrial
Average |
25.02 |
|
Receivables Conversion Period |
69.12 |
|
|
|
|
Receivables Turnover |
5.28 |
Deteriorated |
Industrial
Average |
16.62 |
|
Payables Conversion Period |
42.84 |
|
|
|
Trend of the average
competitors in the same industry for last 5 years
Fixed Assets Turnover Uptrend
Total Assets Turnover Downtrend
Inventory Turnover Uptrend
Receivables Turnover Uptrend
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.51.65 |
|
UK Pound |
1 |
Rs.79.09 |
|
Euro |
1 |
Rs.65.32 |
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%)
This report is issued at your request without any risk
and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its
officials.