MIRA INFORM REPORT

 

 

Report Date :

21.11.2012

 

IDENTIFICATION DETAILS

 

Name :

HANWA CO LTD

 

 

Registered Office :

4-3-9 Fushimimachi Chuoku Osaka 541-8585

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2012

 

 

Date of Incorporation :

April 1947

 

 

Com. Reg. No.:

1200-01-077530 (Osaka-Chuoku)

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Import, export, wholesale of steel products, nonferrous metals, foods, chemicals, petroleum products, machinery, lumber

 

 

No. of Employees :

2,272 employees

 

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 :

Good

Payment Behaviour :

Regular

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 – June 30th, 2012

 

Country Name

Previous Rating

(31.03.2012)

Current Rating

(30.06.2012)

Japan

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

japan - ECONOMIC OVERVIEW

 

In the years following World War II, government-industry cooperation, a strong work ethic, mastery of high technology, and a comparatively small defense allocation (1% of GDP) helped Japan develop a technologically advanced economy. Two notable characteristics of the post-war economy were the close interlocking structures of manufacturers, suppliers, and distributors, known as keiretsu, and the guarantee of lifetime employment for a substantial portion of the urban labor force. Both features are now eroding under the dual pressures of global competition and domestic demographic change. Japan's industrial sector is heavily dependent on imported raw materials and fuels. A tiny agricultural sector is highly subsidized and protected, with crop yields among the highest in the world. Usually self-sufficient in rice, Japan imports about 60% of its food on a caloric basis. Japan maintains one of the world's largest fishing fleets and accounts for nearly 15% of the global catch. For three decades, overall real economic growth had been spectacular - a 10% average in the 1960s, a 5% average in the 1970s, and a 4% average in the 1980s. Growth slowed markedly in the 1990s, averaging just 1.7%, largely because of the after effects of inefficient investment and an asset price bubble in the late 1980s that required a protracted period of time for firms to reduce excess debt, capital, and labor. Measured on a purchasing power parity (PPP) basis that adjusts for price differences, Japan in 2011 stood as the fourth-largest economy in the world after second-place China, which surpassed Japan in 2001, and third-place India, which edged out Japan in 2011. A sharp downturn in business investment and global demand for Japan's exports in late 2008 pushed Japan further into recession. Government stimulus spending helped the economy recover in late 2009 and 2010, but the economy contracted again in 2011 as the massive 9.0 magnitude earthquake in March disrupted manufacturing. Electricity supplies remain tight because Japan has temporarily shut down almost all of its nuclear power plants after the Fukushima Daiichi nuclear reactors were crippled by the earthquake and resulting tsunami. Estimates of the direct costs of the damage - rebuilding homes, factories, and infrastructure - range from $235 billion to $310 billion, and GDP declined almost 0.5% in 2011. Prime Minister Yoshihiko NODA has proposed opening the agricultural and services sectors to greater foreign competition and boosting exports through membership in the US-led Trans-Pacific Partnership trade talks and by pursuing free-trade agreements with the EU and others, but debate continues on restructuring the economy and reining in Japan's huge government debt, which exceeds 200% of GDP. Persistent deflation, reliance on exports to drive growth, and an aging and shrinking population are other major long-term challenges for the economy.

 

 

Source : CIA

 

 

 

 

 

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

 

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 12)

 

 

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

 

SUMMAR 

 

FINANCES        FAIR                 A/SALES          Yen 1,564,250 M

PAYMENTS      REGULAR         CAPITAL           Yen 45,651 M

TREND UP                    WORTH            Yen 115,956 M

STARTED         1947                 EMPLOYES      2,272

 

 

COMMENT

 

TRADING HOUSE SPECIALIZING IN STEEL PRODUCTS. 

 

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

                        Notes: Unit: In Million Yen

Forecast (or estimated) figures for 31/03/2013 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 formed a comprehensive tie-up with Bohai Iron and Steel Group, China’s leading steelmaker, and aims to expand business in China and abroad, including in processed steel products and materials development.  It will acquire two midsize Kansai-based trading firms, and will target small-lot demand.

           

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2012 fiscal term amounted to Yen 1,564,250 million, a 12.0% up from Yen 1,396,103 million in the previous term.  This is thanks to robust sales in the steel business and petroleum & chemical business.  By Divisions; Steel up 7.5% to Yen 745,031 million; Metal Raw Materials up 1.8% to Yen 125,279 million; Nonferrous Metals up 3.4% to Yen 62,054 million; Foods up 14.5% to Yen 91,709 million; Petroleum & Chemicals up 23.7% to Yen 457,578 million.  The recurring profit was posted at Yen 13,116 million and the net profit at Yen 4,632 million, respectively, compared with Yen 13,490 million recurring profit and Yen 5,793 million net profit, respectively, a year ago.

 

(Apr/Sept/2012 results): Sales Yen 735,573 million (down 3.6%), operating profit Yen 5,032 million (down 50.2%), recurring profit Yen 4,206 million (down 58.4%), net losses Yen 87 million (previously Yen 3,822 million profit).  (% compared with the corresponding period a year ago).

 

For the current term ending Mar 2013 the recurring profit is projected at Yen 15,000 million and the net profit at Yen 8,700 million, respectively, on a 2.3% rise in turnover, to Yen 1,600,000 million.  Mainline steel product sales to the mfg industry will perform well, and reconstruction demand, including from the construction industry, will emerge from the second half.  The market downturn in metal materials and nonferrous metals will start to improve.  Sales of petroleum and chemical products will remain high, including for power generation.  Extraordinary loss on securities valuation and securities sale is not anticipated.

 

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

 

 

REGISTRATION

 

Date Registered:        Apr 1947

Regd No.:            1200-01-077530 (Osaka-Chuoku)

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 T (8.5), Master Trust Bank of Japan T (5.2), SMBC (3.6), Customers’ S/Holding Assn (2.7), Japan Trustee Services T9 (2.6), Employees’ S/Holding Assn (2.2), Company’s Treasury Stock (2.0), Trust & Custody Services Inv T (2.0), BBH for Fidelity Low Price Stock (1.6), Chase London SL Omnibus Acct (1.6); foreign owners (16.9)

           

No. of shareholders: 11,701

 

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

 

Managements: Shuji Kita, ch; Hironari Furukawa, pres; Tetsuro Akimoto, v pres; Yoshifumi Nishi, s/mgn dir; Hiroshi Serizawa, s/mgn dir; Hiroshi Ebihara, s/mgn dir; Akihiko Ogasawara, mgn dir; Atsuhiro Moriguchi, mgn dir; Takahiko Kaida, mgn 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 (47%): steel bars, shapes, construction materials, wire rods, steel sheets, other;            

 

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

 

Non-Ferrous Metal Div (4%): aluminum, copper, nickel, chromium, zinc (recycling);

 

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

 

Petroleum & Chemicals Div (29%): fuels, petrochemicals, other;

 

Other Div (6%): lumber, plywood, logs, building materials, other.

 

Overseas sales ratio (24%)

 

Clients: [Mfrs, wholesalers, general contractors] JX Nippon Oil & Energy Corp, Mitsui-OSK Lines, K Lines, NYK Lines, Idemitsu Kosan, Obayashi Corp, Takenaka Corp, Shimizu Corp, Sumitomo Metal Ind, Oji Paper Mills, Osaka Uoichiba, NYK Lines, K Lines, Multi Trade Enterprises, China Ordins Group Co, Daewoo Shipbuilding & Marine Engineering, Seojoo Global Corporation, Nippon Metal Ind, Ministry of Defense, other.

            No. of accounts: 1,000

            Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Nippon Steel & Sumitomo Metal Corp, Nisshin Steel, JFE Steel, JXX Nippon Oil & Energy Corp, Tonen General Sekiyu, Kobe Steel, 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:

31/03/2012

31/03/2011

INCOME STATEMENT

 

 

 

  Annual Sales

　

1,564,250

1,396,103

 

  Cost of Sales

1,517,904

1,352,359

 

      GROSS PROFIT

46,346

43,744

 

  Selling & Adm Costs

31,369

29,890

 

      OPERATING PROFIT

14,976

13,853

 

  Non-Operating P/L

-1,860

-363

 

      RECURRING PROFIT

13,116

13,490

　

      NET PROFIT

4,632

5,793

BALANCE SHEET

 

 

 

 

  Cash

　

23,548

20,707

 

  Receivables

 

301,035

274,348

 

  Inventory

 

110,908

101,350

 

  Securities, Marketable

　

　

 

  Other Current Assets

32,491

26,799

 

      TOTAL CURRENT ASSETS

467,982

423,204

 

  Property & Equipment

56,387

47,041

 

  Intangibles

 

629

684

 

  Investments, Other Fixed Assets

57,406

61,868

 

      TOTAL ASSETS

582,404

532,797

 

  Payables

 

186,810

156,546

 

  Short-Term Bank Loans

90,412

90,942

 

　

 

　

　

 

  Other Current Liabs

42,513

40,585

 

      TOTAL CURRENT LIABS

319,735

288,073

 

  Debentures

 

20,000

10,000

 

  Long-Term Bank Loans

116,738

115,075

 

  Reserve for Retirement Allw

191

133

 

  Other Debts

　

9,784

9,057

 

      TOTAL LIABILITIES

466,448

422,338

 

      MINORITY INTERESTS

 

 

 

Common stock

45,651

45,651

 

Additional paid-in capital

4

4

 

Retained earnings

69,978

67,608

 

Evaluation p/l on investments/securities

2,084

952

 

Others

 

(336)

(2,334)

 

Treasury stock, at cost

(1,425)

(1,423)

 

      TOTAL S/HOLDERS` EQUITY

115,956

110,458

　

      TOTAL EQUITIES

582,404

532,797

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

31/03/2012

31/03/2011

 

Cash Flows from Operating Activities

　

11,970

-46,948

 

Cash Flows from Investment Activities

-12,009

-7,610

 

Cash Flows from Financing Activities

1,596

51,271

　

Cash, Bank Deposits at the Term End

　

23,411

20,586

ANALYTICAL RATIOS            Terms ending:

31/03/2012

31/03/2011

 

 

Net Worth (S/Holders' Equity)

115,956

110,458

 

 

Current Ratio (%)

146.37

146.91

 

 

Net Worth Ratio (%)

19.91

20.73

 

 

Recurring Profit Ratio (%)

0.84

0.97

 

 

Net Profit Ratio (%)

0.30

0.41

 

 

Return On Equity (%)

3.99

5.24

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.54.91

UK Pound

1

Rs.87.38

Euro

1

Rs.70.24

 

INFORMATION DETAILS

 

Report Prepared by :

MNL

 

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.