MIRA INFORM REPORT

 

 

Report Date :

29.08.2013

 

IDENTIFICATION DETAILS

 

Name :

HONDA FOUNDRY CO LTD

 

 

Registered Office :

1620 Mature Kawagoe Saitama-Pref 350-1101

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2013

 

 

Date of Incorporation :

December  1963

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Manufacturer of car engines, chassis components, aluminum alloy parts, die mold

 

 

No. of Employees :

727

 

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, 2013

 

Country Name

Previous Rating

(31.12.2012)

Current Rating

(31.03.2013)

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 small agricultural sector is highly subsidized and protected, with crop yields among the highest in the world. While self-sufficient in rice production, Japan imports about 60% of its food on a caloric basis. 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. Modest economic growth continued after 2000, but the economy has fallen into recession three times since 2008. A sharp downturn in business investment and global demand for Japan's exports in late 2008 pushed Japan 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 and the ensuing tsunami in March disrupted manufacturing. The economy has largely recovered in the two years since the disaster, but reconstruction in the Tohoku region has been uneven. Newly-elected Prime Minister Shinzo ABE has declared the economy his government's top priority; he has pledged to reconsider his predecessor's plan to permanently close nuclear power plants and is pursuing an economic revitalization agenda of fiscal stimulus and regulatory reform and has said he will press the Bank of Japan to loosen monetary policy. Measured on a purchasing power parity (PPP) basis that adjusts for price differences, Japan in 2012 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 2012. The new government will continue a longstanding debate 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 and address

 

HONDA FOUNDRY CO LTD

REGD NAME:   Honda Kinzoku Gijutsu KK

MAIN OFFICE:  1620 Mature Kawagoe Saitama-Pref 350-1101 JAPAN

Tel: 049-231-1521      Fax: 049-233-1139

                                               

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

E-Mail address: (thru the URL)

 

 

ACTIVITIES

 

Mfg of car engines, chassis components, aluminum alloy parts, die mold

 

BRANCHES

 

Fukushima

 

OVERSEAS

 

USA (2), China (4), India, Indonesia, Thailand, Philippines (--factories)

 

FACTORIES  

 

At the caption address, Fukushima

 

 

OFFICERS

 

YOSUKE NARITA, PRES                       Takahiro Suenaga, dir

      Naoharu Watanabe, dir                    Takashi Yamanaka, dir

      Hoichi Takahashi, dir                        Takenori Yamaguchi

Takashi Yamanaka, dir                                                  

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY    

 

FINANCES        FAIR                             A/SALES          Yen 17,558 M

PAYMENTSNO COMPLAINTS    CAPITAL           Yen 1,260 M

TREND SLOW                           WORTH            Yen 2,493 M

STARTED         1963                             EMPLOYES      727

 

 

COMMENT

 

MFR OF CAR ENGINES, COMPONENTS, OTHER, OWNED BY HONDA

MOTOR CO LTD.

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

                       

HIGHLIGHTS

           

            The subject company was established on the basis of a division separated from Honda Motor Co Ltd (See REGISTRATION).  This is a specialized mfr of automobile/motorcycle engines, chassis components, aluminum alloy parts, die mold coatings, other.  Products are manufactures at overseas factories, in addition to domestic factories.  Products are shipped to the parent, Honda Motor Co, and other car makers.

 

 

FINANCIAL INFORMATION

           

            The sales volume for Mar/2013 fiscal term amounted to Yen 17,558 million, a 1% down from Yen 17,722 million in the previous term.  The recurring profit was posted at Yen 923 million and the net profit at Yen 752 million, respectively, compared with Yen 358 million recurring profit and Yen 31 million net profit, respectively, a year ago.

 

            For the current term ending Mar 2014 the recurring profit is projected at Yen 950 million and the net profit at Yen 800 million, respectively, on a 3% rise in turnover, to Yen 18,000 million.  Motorcycle sales are expanding in Asia. 

 

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

 

 

REGISTRATION

 

Date Registered:  Dec 1963

Legal Status:       Limited Company (Kabushiki Kaisha)

Authorized:         10 million shares

Issued:                2.52 million shares

Sum:                   Yen 1,260 million

     Major shareholders (%): Honda Motor Co Ltd* (55)

No. of shareholders: 7

 

*.. Honda Motor Co Ltd, major car makers ranked 2nd in domestic market, founded 1948,

Listed Tokyo S/E, capital Yen 86,067 million, sales Yen 9,877,947 million, operating profit Yen 544,810 million, recurring profit Yen 488,891 million, net profit Yen 367,149, total assets Yen 1,3675,357 million, net worth Yen 5,037,477 million, employees 24,888, pres Takanobu Ito

 

Nothing detrimental is known as to the commercial morality of executives.

 

 

OPERATION

 

Activities: Manufactures automobile/motorcycle engines, chassis components, aluminum alloy parts, die mold coatings, other (--100%)

 

(Mfg items): piston, cylinder heads, intake manifold, injector base, hub wheel, swing arm,

Fork-top bridge, water passage, bracket, transfer case, other

 

Clients: [Car makers, car parts makers] Honda Motor (80%), Mitsubishi Motor, Fuji Heavy Ind, Denso Co, Kawasaki Heavy Ind, Mitsubishi Heavy Ind, Denso Corp, other

No. of accounts: 300

Domestic areas of activities: Nationwide

Suppliers: [Mfrs, wholesalers] Honda Motor, Honda Trading, Summit Showa Aluminum, Nikkei MC Aluminum, Daiki Aluminum Ind, other

 

Payment record: No Complaints

Location: Business area in Kawagoe, Saitama-Pref.  Office premises at the caption address are owned and maintained satisfactorily.

 

 

Bank References:

MUFG (Shimo-Akatsuka)

Saitama Resona Bank (Kawagoe)

                        Relations: Satisfactory

 

 

FINANCES

(In Million Yen)

 

       Terms Ending:

31/03/2014

31/03/2013

31/03/2012

31/03/2011

Annual Sales

 

18,000

17,558

17,722

18,833

Recur. Profit

 

950

923

358

577

Net Profit

 

800

752

31

382

Total Assets

 

 

14,574

14,719

14,321

Current Assets

 

 

8,970

6,978

6,054

Current Liabs

 

 

7,426

8,206

7,897

Net Worth

 

 

2,493

1,792

1,684

Capital, Paid-Up

 

 

1,260

1,260

1,260

Div.P.Share(¥)

 

 

0.00

0.00

0.00

<Analytical Data>

(%)

(%)

(%)

(%)

    S.Growth Rate

2.52

-0.93

-5.90

29.61

    Current Ratio

 

..

120.79

85.04

76.66

    N.Worth Ratio

..

17.11

12.17

11.76

    R.Profit/Sales

 

5.28

5.26

2.02

3.06

    N.Profit/Sales

4.44

4.28

0.17

2.03

    Return On Equity

..

30.16

1.73

22.68

 Notes: Forecast (or estimated) figures for the 31/03/2014 fiscal term.


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.68.36

UK Pound

1

Rs.106.03

Euro

1

Rs.91.47

 

 

INFORMATION DETAILS

 

Report Prepared by :

PRL

 

 

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.