|
Report Date : |
01.09.2012 |
IDENTIFICATION DETAILS
|
Name : |
HONDA TRADING CORPORATION |
|
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|
Registered Office : |
Aoyama Bldg 9F, 1-2-3 Kitaaoyama Minatoku Tokyo107-0071 |
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Country : |
Japan |
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|
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Financials (as on) : |
31.03.2012 |
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Date of Incorporation : |
1951 |
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Com. Reg. No.: |
(Tokyo-Chiyodaku) 071634 |
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Legal Form : |
Limited Company (Kabushiki
Kaisha) |
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Line of Business : |
Import, export, wholesale of steels, machinery, nonferrous metals, seafood, other |
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|
|
|
No. of Employees : |
316 |
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 : |
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 – 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 |
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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
HONDA TRADING CORPORATION (The given
name is its subsidiary in India)
REGD NAME: KK Honda Trading
MAIN OFFICE: Aoyama Bldg 9F, 1-2-3 Kitaaoyama Minatoku
Tokyo107-0071 JAPAN
Tel:
03-3402-1100 Fax: 03-3402-1101
*.. Moved to the caption
address from the former as given
URL: http://www.hondatrading-jp.com/
E-Mail
address: (thru the URL)
Import,
export, wholesale of steels, machinery, nonferrous metals, seafood, other
Nagoya,
Osaka, Tochigi, Saitama, Gunma, Suzuka (Shizuoka), Kumamoto
USA (5), Brazil (3), Europe (4), Thailand (3), China (4), Taiwan (2), Canada, Mexico, India, Indonesia, Korea, other (Tot 53 over 21 countries) (--subsidiaries & affiliates)
SHIGERU
TAKAGI, PRES Tomonao Osaka, s/mgn
dir
Tadashi
Matsumoto, mgn dir Akira Takeshita,
mgn dir
Junji
Yamazaki, dir Takashi
Mori, dir
Yen
Amount: In million Yen, unless
otherwise stated
FINANCES FAIR A/SALES Yen 286,157 M
PAYMENTS
REGULAR CAPITAL Yen 1,600 M
TREND SLOW WORTH Yen 10,938 M
STARTED 1951 EMPLOYES 316
GENERAL TRADING HOUSE, WHOLLY OWNED BY HONDA MOTOR CO LTD. FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.
The subject
company was established on the basis of an overseas trading division separated
from Honda Motor Co Ltd, nation’s leading carmaker, Tokyo (see REGISTRATION). This is a general trading house for import,
export and wholesale of steels, auto parts & components, machinery,
nonferrous metals, synthetic resins, marine & farm products, lumber,
other. Supplies to the parent: steels,
imported aluminum products, parts & components; and exports Honda’s car
knockdown parts & components.
Actively expanding into non-Honda networks.
Financials
are consolidated by the parent, Honda Motor Co, and disclosed only in digest
forms
The sales volume for Mar/2012
fiscal term amounted to Yen 286,157 million, a 7% down from Yen 306,156 million
in the previous term. At the parent
side, sales were substantially affected by the global economic downturn and
temporary suspension and production adjustments as a result of the Great east
Japan Earthquake which occurred on March 11, 2011 as well as floods in
Thailand. Additionally unfavorable
foreign currency translation effected.
The recurring profit was posted at Yen 4,968 million and the net losses
of Yen 39 million, respectively, compared with Yen 3,653 million recurring
profit and Yen 11,832 million net losses, respectively, a year ago. .
For the
current term ending Mar 2013 the recurring profit is projected at Yen 5,000
million and the net profit at Yen 2,000 million, respectively, on a 12% rise in
turnover, to Yen 320,000 million. At
parent side, sales in North America will recover strongly. Four-wheeler sales volume is projected to
grow 38.3% to hit a record high 4.3 million units. Motorcycle sales volume will also continue
rising.
The
financial situation is considered FAIR and good for ORDINARY business
engagements.
Date Registered: Mar 1972
Regd No.: (Tokyo-Chiyodaku)
071634
Legal Status:
Limited Company (Kabushiki Kaisha)
Authorized:
6.4 million shares
Issued:
1.6 million shares
Sum: Yen 1,600 million
Major shareholders (%):
Honda Motor Co Ltd*(100)
*..
Major carmaker ranking in 2nd in domestic market, Tokyo, founded
1948, listed Tokyo S/E, capital Yen 86,067 million, sales Yen 7,948,095
million, operating profit Yen 231,364 million, recurring profit Yen 257,403
million, net profit Yen 211,482 million, total assets Yen 11,780,759 million,
net worth Yen 4,528,290 million, employees 24,888, pres Takanobu Ito
Consolidated
Financials are attached (See SUPPLEMENTS)
Nothing
detrimental is known as to the commercial morality of executives.
Activities: Trading house for import, export and
wholesale of: steels, steel products
(25.0%), automobile parts &
components, including knockdown parts (39.0%), nonferrous
metals (28.0%), synthetic
resins, marine & farm products, pulp & paper, lumber (8.0%).
Exports (59%)
Clients: [Mfrs, wholesalers] Honda Motor, Honda
Trading America, Honda Trading Europe, Honda Trading Thailand, Honda Trading
China, Miyuki Industries Thailand, Steel Center, Asahi Seiren, Miyuki
Industries, other.
No. of
accounts: 1,000
Domestic
areas of activities: Nationwide
Suppliers: [Mfrs, wholesalers] Nippon Steel,
Honda Trading America, Honda Trading Europe, Honda Motor, Honda Engineering,
JFE Steel, Matsushita Electric Ind, Allis Sanyo, Tanaka Seimitsu Kogyo, other.
Payment record: No
complaints
Location:
Business area in Tokyo. Office premises
at the caption address are leased and maintained satisfactorily.
MUFG
(H/O)
Mizuho
Corporate Bank (H/O)
Relations:
Satisfactory
(In Million Yen)
|
Terms Ending: |
31/03/2013 |
31/03/2012 |
31/03/2011 |
31/03/2010 |
|
|
Annual Sales |
|
320,000 |
286,157 |
306,156 |
251,340 |
|
Recur. Profit |
|
5,000 |
4,968 |
3,653 |
2,003 |
|
Net Profit |
|
2,000 |
-39 |
-11,832 |
1,134 |
|
Total Assets |
|
|
92,474 |
88,680 |
98,418 |
|
Current Assets |
|
|
78,637 |
74,922 |
84,581 |
|
Current Liabs |
|
|
80,757 |
77,062 |
74,663 |
|
Net Worth |
|
|
10,938 |
11,350 |
23,317 |
|
Capital, Paid-Up |
|
|
1,600 |
1,600 |
1,600 |
|
Div.P.Share(¥) |
|
|
75.00 |
75.00 |
75.00 |
|
<Analytical Data> |
(%) |
(%) |
(%) |
(%) |
|
|
S.Growth Rate |
11.83 |
-6.53 |
21.81 |
-38.99 |
|
|
Current Ratio |
|
.. |
97.37 |
97.22 |
113.28 |
|
N.Worth Ratio |
.. |
11.83 |
12.80 |
23.69 |
|
|
R.Profit/Sales |
|
1.56 |
1.74 |
1.19 |
0.80 |
|
N.Profit/Sales |
0.63 |
-0.01 |
-3.86 |
0.45 |
|
|
Return On Equity |
.. |
-0.36 |
-104.25 |
4.86 |
|
Notes:
Forecast (or estimated figures) for the 31/03/2013 fiscal term
CONSOLIDATED FINANCIALS OF THE PARENT,
HONDA MOTOR CO LTD
|
FINANCES: (Consolidated in million yen) |
|
|||||
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Terms Ending: |
31/03/2012 |
31/03/2011 |
||
|
INCOME STATEMENT |
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||||
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Annual Sales |
|
7,948,095 |
8,936,867 |
||
|
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Cost of Sales |
5,919,633 |
6,496,841 |
|||
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GROSS PROFIT |
2,028,462 |
2,440,026 |
|||
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Selling & Adm Costs |
1,797,097 |
1,870,251 |
|||
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OPERATING PROFIT |
231,364 |
569,775 |
|||
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Non-Operating P/L |
26,039 |
60,773 |
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RECURRING PROFIT |
257,403 |
630,548 |
|||
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NET PROFIT |
211,482 |
534,088 |
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BALANCE SHEET |
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|||
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Cash |
|
1,247,113 |
1,279,024 |
||
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Receivables |
|
812,155 |
787,691 |
||
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Inventory |
|
1,035,779 |
899,813 |
||
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Securities, Marketable |
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|||
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Other Current Assets |
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|||
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TOTAL CURRENT ASSETS |
4,739,086 |
4,690,047 |
|||
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Property & Equipment |
1,973,458 |
1,939,356 |
|||
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Intangibles |
|
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||
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Investments, Other Fixed
Assets |
|
|
|||
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TOTAL ASSETS |
11,780,759 |
11,570,874 |
|||
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Payables |
|
964,848 |
1,094,740 |
||
|
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Short-Term Bank Loans |
911,395 |
962,455 |
|||
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||
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Other Current Liabs |
|
|
|||
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TOTAL CURRENT LIABS |
3,579,759 |
3,568,192 |
|||
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Debentures |
|
|
|
||
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Long-Term Bank Loans |
2,235,001 |
2,043,240 |
|||
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Reserve for Retirement
Allw |
|
|
|||
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Other Debts |
|
|
|
||
|
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TOTAL LIABILITIES |
7,252,469 |
6,987,962 |
|||
|
|
MINORITY INTERESTS |
|
|
|||
|
|
Common stock |
86,067 |
86,067 |
|||
|
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Additional paid-in capital |
172,529 |
172,529 |
|||
|
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Retained earnings |
5,769,029 |
5,666,539 |
|||
|
|
Evaluation p/l on investments/securities |
(1,646,078) |
(1,495,380) |
|||
|
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Others |
|
|
|
||
|
|
Treasury stock, at cost |
(26,117) |
(26,110) |
|||
|
|
TOTAL S/HOLDERS`
EQUITY |
4,528,290 |
4,582,912 |
|||
|
|
TOTAL EQUITIES |
11,780,759 |
11,570,874 |
|||
|
CONSOLIDATED CASH FLOWS |
|
|
||||
|
|
|
Terms ending: |
31/03/2012 |
31/03/2011 |
||
|
|
Cash Flows from Operating Activities |
|
737,429 |
1,070,837 |
||
|
|
Cash Flows from Investment Activities |
-673,069 |
-731,390 |
|||
|
|
Cash Flows from Financing Activities |
-44,121 |
-100,416 |
|||
|
|
Cash, Bank Deposits at the Term End |
|
1,247,113 |
1,279,024 |
||
|
ANALYTICAL RATIOS Terms ending: |
31/03/2012 |
31/03/2011 |
||||
|
|
|
Net Worth (S/Holders' Equity) |
4,528,290 |
4,582,912 |
||
|
|
|
Current Ratio (%) |
132.39 |
131.44 |
||
|
|
|
Net Worth Ratio (%) |
38.44 |
39.61 |
||
|
|
|
Recurring Profit Ratio (%) |
3.24 |
7.06 |
||
|
|
|
Net Profit Ratio (%) |
2.66 |
5.98 |
||
|
|
|
Return On Equity (%) |
4.67 |
11.65 |
||
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.55.72 |
|
|
1 |
Rs.87.95 |
|
Euro |
1 |
Rs.69.65 |
INFORMATION DETAILS
|
Report Prepared
by : |
PDT |
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.