MIRA
INFORM REPORT
|
Report Date : |
12.09.2012 |
IDENTIFICATION DETAILS
|
Name : |
HONDA TRADING
ASIA CO., LTD. |
|
|
|
|
Registered Office : |
3rd Floor, Indosuez House, Wireless Road, Lumpini, Pathumwan, Bangkok 10330 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.03.2012 |
|
|
|
|
Date of Incorporation : |
1991 |
|
|
|
|
Com. Reg. No.: |
0105534025726 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Importer, Distributor And Exporter of Steels |
|
|
|
|
No. of Employees : |
250 |
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 – March 31st, 2012
|
Country Name |
Previous Rating (31.12.2011) |
Current Rating (31.03.2012) |
|
Thailand |
B1 |
B1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
HAILAND - ECONOMIC OVERVIEW
With a well-developed infrastructure, a free-enterprise economy,
generally pro-investment policies, and strong export industries, Thailand enjoyed
solid growth from 2000 to 2007 - averaging more than 4% per year - as it
recovered from the Asian financial crisis of 1997-98. Thai exports - mostly
machinery and electronic components, agricultural commodities, and jewelry -
continue to drive the economy, accounting for more than half of GDP. The global
financial crisis of 2008-09 severely cut Thailand's exports, with most sectors
experiencing double-digit drops. In 2009, the economy contracted 2.3%. In 2010,
Thailand's economy expanded 7.8%, its fastest pace since 1995, as exports
rebounded from their depressed 2009 level. Steady economic growth at just below
4% during the first three quarters of 2011 was interrupted by historic flooding
in October and November in the industrial areas north of Bangkok, crippling the
manufacturing sector and leading to a revised growth rate of only 0.1% for the
year. The industrial sector is poised to recover from the second quarter of
2012 onward, however, and the government anticipates the economy will probably
grow between 5.5 and 6.5% for 2012, while private sector forecasts range
between 3.8% and 5.7%.
Source : CIA
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
TAX
ID NO. : 3101951721
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 : 250
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 approximate 250 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 House,
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 |
|
Japanese |
52 |
|
Mr. Mitsunari Takano |
|
Japanese |
57 |
AUTHORIZED PERSON
One of the
above directors 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.
Mr. Mitsunari Takano is
the Vice President.
He is Japanese
nationality with the
age of 57
years old.
BUSINESS OPERATIONS
The subject
is engaged in
international trading business,
to import, distribute
and export various
kinds of industrial
products, such as
steels, aluminium, plastic,
machinery, tools & equipment, mold parts,
automotive recycling products [automotive materials
i.e. steel, aluminium
resin & etc.], 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,
France, Italy 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
according 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
250 staff.
LOCATION
DETAILS
The
premise is rented
for administrative office
at the heading
address. Premise is
located in a prime
commercial area.
Branches
office : [Thailand / Overseas]
- 47
Moo 7, Poochaosaingprai Rd.,
Samrong, Phrapradaeng, Samutprakarn.
- 102/1
Moo 1, Wat
Daowadueng 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.
- Hacpl-Desk, 43-KM,
Mutan Road, Manga
Mandi, Lahore 54300,
Pakistan.
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.
Since October
2011, it's been six months that
extensive flooding put a strangle hold on manufacturing in Thailand. Honda
car has finally resumed production at
its Ayutthaya plant in April 2012. The disaster
had cost the company’s production
of around 260,000 vehicles worldwide for the fiscal year that ended in March.
While a rash of parts suppliers and other manufacturers were forced to shut
down during the flooding. The Ayutthaya plant
builds the Honda Fit for the Asian and Australian
markets.
This has
dampened demand of
steel using in
manufacturing process during
the closure
of its
plant as well.
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 24,
2012]
|
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 24,
2012]
|
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, 2012 &
2011 were:
ASSETS
|
Current Assets |
2012 |
2011 |
|
|
|
|
|
Cash and Cash Equivalent |
138,259,905 |
103,142,772 |
|
Trade Accounts Receivable |
9,500,968,642 |
6,740,964,755 |
|
Compensation Receivable from
Insurance |
44,848,441 |
- |
|
Other Receivable |
102,770,333 |
106,397,242 |
|
Inventories |
6,719,506,609 |
4,422,622,427 |
|
Refundable Value Added
Tax |
117,096,930 |
171,591,598 |
|
Other Current Assets |
50,824,123 |
57,016,805 |
|
|
|
|
|
Total Current Assets
|
16,674,274,983 |
11,601,735,599 |
|
|
|
|
|
Long-term Investment |
43,717,628 |
43,717,628 |
|
Fixed Assets |
247,548,421 |
255,863,528 |
|
Intangible Assets |
32,788,255 |
42,083,193 |
|
Other Assets |
6,718,000 |
7,038,568 |
|
Total Assets |
17,005,047,287 |
11,950,438,516 |
LIABILITIES & SHAREHOLDERS’ EQUITY [BAHT]
|
Current
Liabilities |
2012 |
2011 |
|
|
|
|
|
Short-term Loan from Financial
Institution |
6,110,000,000 |
3,820,000,000 |
|
Trade Accounts Payable |
6,350,879,577 |
3,943,304,282 |
|
Other Payable |
75,544,341 |
69,239,291 |
|
Current Portion of
Long-term Loan Financial Institution |
300,000,000 |
- |
|
Advance Income from Customer |
139,014,818 |
135,197,697 |
|
Accrued Income Tax |
135,192,313 |
318,665,161 |
|
Accrued Expenses |
249,281,150 |
120,811,706 |
|
Other Current Liabilities |
33,136,840 |
3,771,993 |
|
|
|
|
|
Total Current Liabilities |
13,393,049,039 |
8,410,990,130 |
|
|
|
|
|
Estimated Liabilities from
Employee Benefits |
13,390,826 |
- |
|
Long-term Payable from
Related Company |
- |
300,000,000 |
|
Total Liabilities |
13,406,439,865 |
8,710,990,130 |
|
|
|
|
|
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 |
|
Retained Earning Appropriated for
Statutory Reserve |
11,200,000 |
11,200,000 |
|
Unappropriated |
3,475,407,422 |
3,116,248,386 |
|
Total Shareholders' Equity |
3,598,607,422 |
3,239,448,386 |
|
Total Liabilities & Shareholders' Equity |
17,005,047,287 |
11,950,438,516 |
PROFIT & LOSS
ACCOUNT
|
Revenue |
2012 |
2011 |
|
|
|
|
|
Sales & Services |
34,633,497,395 |
35,598,703,661 |
|
Interest Income |
9,408,400 |
7,523,601 |
|
Dividend Income |
12,581,772 |
3,635,213 |
|
Gain on Exchange
Rate |
188,154,781 |
74,627,886 |
|
Other Income |
149,327,719 |
88,613,645 |
|
Total Revenues |
34,992,970,067 |
35,773,104,006 |
|
Expenses |
|
|
|
|
|
|
|
Cost of Goods
Sold & Services |
32,802,794,331 |
33,594,973,971 |
|
Selling Expenses |
463,388,409 |
548,110,871 |
|
Administrative Expenses |
380,982,111 |
283,258,591 |
|
Loss on Flood
Incident |
49,797,543 |
- |
|
Total Expenses |
33,696,962,394 |
34,426,343,433 |
|
|
|
|
|
Profit before Financial Cost & Income
Tax |
1,296,007,673 |
1,346,760,573 |
|
Financial Cost |
[134,100,624] |
[55,940,276] |
|
Profit before Income Tax |
1,161,907,049 |
1,290,820,297 |
|
Income Tax |
[357,492,013] |
[400,305,746] |
|
|
|
|
|
Net Profit / [Loss] |
804,415,036 |
890,514,551 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2012 |
2011 |
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
CURRENT RATIO |
TIMES |
1.24 |
1.38 |
|
QUICK RATIO |
TIMES |
0.73 |
0.83 |
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
139.91 |
139.13 |
|
TOTAL ASSETS TURNOVER |
TIMES |
2.04 |
2.98 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
74.77 |
48.05 |
|
INVENTORY TURNOVER |
TIMES |
4.88 |
7.60 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
100.13 |
69.12 |
|
RECEIVABLES TURNOVER |
TIMES |
3.65 |
5.28 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
70.67 |
42.84 |
|
CASH CONVERSION CYCLE |
DAYS |
104.23 |
74.32 |
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
COST OF GOODS SOLD |
% |
94.71 |
94.37 |
|
SELLING & ADMINISTRATION |
% |
2.44 |
2.34 |
|
INTEREST |
% |
0.39 |
0.16 |
|
GROSS PROFIT MARGIN |
% |
6.32 |
6.12 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
3.74 |
3.78 |
|
NET PROFIT MARGIN |
% |
2.32 |
2.50 |
|
RETURN ON EQUITY |
% |
22.35 |
27.49 |
|
RETURN ON ASSET |
% |
4.73 |
7.45 |
|
EARNING PER SHARE |
BAHT |
718.23 |
795.10 |
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
DEBT RATIO |
TIMES |
0.79 |
0.73 |
|
DEBT TO EQUITY RATIO |
TIMES |
3.73 |
2.69 |
|
TIME INTEREST EARNED |
TIMES |
9.66 |
24.07 |
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
SALES GROWTH |
% |
(2.71) |
|
|
OPERATING PROFIT |
% |
(3.77) |
|
|
NET PROFIT |
% |
(9.67) |
|
|
FIXED ASSETS |
% |
(3.25) |
|
|
TOTAL ASSETS |
% |
42.30 |
|
PROFITABILITY
RATIO
|
Gross Profit Margin |
6.32 |
Impressive |
Industrial
Average |
5.92 |
|
Net Profit Margin |
2.32 |
Impressive |
Industrial Average |
0.42 |
|
Return on Assets |
4.73 |
Impressive |
Industrial
Average |
0.82 |
|
Return on Equity |
22.35 |
Impressive |
Industrial
Average |
1.88 |
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 6.32%. When compared with the industry
average, the ratio of the company was higher, this indicated that company was
more profitable than the same industry.
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
2.32%, 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
4.73%, 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 22.35%, higher figure when compared
with those of its average competitors in the same industry, indicated that
business was an efficient profits 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 |
1.24 |
Impressive |
Industrial
Average |
1.23 |
|
Quick Ratio |
0.73 |
|
|
|
|
Cash Conversion Cycle |
104.23 |
|
|
|
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 1.24 times in 2012, decreased from 1.38 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 higher, indicated that company
was an efficient operator in a dominant position within its industry.
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 0.73 times in 2012,
decreased from 0.83 times, then the company has not enough current assets that
presumably can be quickly converted to cash for pay financial obligations.
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 105 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Downtrend
LEVERAGE RATIO
|
Debt Ratio |
0.79 |
Acceptable |
Industrial
Average |
0.64 |
|
Debt to Equity Ratio |
3.73 |
Risky |
Industrial
Average |
1.96 |
|
Times Interest Earned |
9.66 |
Impressive |
Industrial Average |
1.39 |
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 9.67 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 0.79 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 Downtrend
ACTIVITY RATIO
|
Fixed Assets Turnover |
139.91 |
Impressive |
Industrial
Average |
7.95 |
|
Total Assets Turnover |
2.04 |
Satisfactory |
Industrial
Average |
2.15 |
|
Inventory Conversion Period |
74.77 |
|
|
|
|
Inventory Turnover |
4.88 |
Impressive |
Industrial
Average |
4.58 |
|
Receivables Conversion Period |
100.13 |
|
|
|
|
Receivables Turnover |
3.65 |
Acceptable |
Industrial
Average |
5.68 |
|
Payables Conversion Period |
70.67 |
|
|
|
Trend of the
average competitors in the same industry for last 5 years
Fixed Assets Turnover Downtrend
Total Assets Turnover Downtrend
Inventory Turnover Downtrend
Receivables Turnover Downtrend
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.55.52 |
|
|
1 |
Rs.88.84 |
|
Euro |
1 |
Rs.70.85 |
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.