MIRA
INFORM REPORT
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Report Date : |
07.03.2013 |
IDENTIFICATION DETAILS
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Name : |
HANWA CO LTD |
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Registered Office : |
4-3-9 Fushimimachi Chuoku Osaka 541-8585 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2012 |
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Date of Incorporation : |
April 1947 |
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Com. Reg. No.: |
1200-01-077530 (Osaka-Chuoku) |
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Legal Form : |
Limited Company |
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Line of Business : |
Import, export, wholesale of steel products, nonferrous metals,
foods, chemicals, petroleum products, machinery, lumber |
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No. of Employees : |
2,272 employees |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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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
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Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
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Japan |
A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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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.
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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 is its Tokyo Head Office
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
SUMMARY
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)
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FINANCES: (Consolidated
in million yen) |
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Terms Ending: |
31/03/2012 |
31/03/2011 |
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INCOME STATEMENT |
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Annual Sales |
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1,564,250 |
1,396,103 |
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Cost of Sales |
1,517,904 |
1,352,359 |
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GROSS PROFIT |
46,346 |
43,744 |
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Selling & Adm Costs |
31,369 |
29,890 |
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OPERATING PROFIT |
14,976 |
13,853 |
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Non-Operating P/L |
-1,860 |
-363 |
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RECURRING PROFIT |
13,116 |
13,490 |
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NET PROFIT |
4,632 |
5,793 |
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BALANCE SHEET |
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Cash |
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23,548 |
20,707 |
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Receivables |
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301,035 |
274,348 |
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Inventory |
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110,908 |
101,350 |
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Securities, Marketable |
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Other Current Assets |
32,491 |
26,799 |
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TOTAL CURRENT ASSETS |
467,982 |
423,204 |
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Property & Equipment |
56,387 |
47,041 |
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Intangibles |
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629 |
684 |
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Investments, Other Fixed Assets |
57,406 |
61,868 |
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TOTAL ASSETS |
582,404 |
532,797 |
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Payables |
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186,810 |
156,546 |
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Short-Term Bank Loans |
90,412 |
90,942 |
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Other Current Liabs |
42,513 |
40,585 |
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TOTAL CURRENT LIABS |
319,735 |
288,073 |
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Debentures |
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20,000 |
10,000 |
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Long-Term Bank Loans |
116,738 |
115,075 |
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Reserve for Retirement Allw |
191 |
133 |
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Other Debts |
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9,784 |
9,057 |
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TOTAL LIABILITIES |
466,448 |
422,338 |
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MINORITY INTERESTS |
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Common
stock |
45,651 |
45,651 |
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Additional
paid-in capital |
4 |
4 |
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Retained
earnings |
69,978 |
67,608 |
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Evaluation
p/l on investments/securities |
2,084 |
952 |
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Others |
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(336) |
(2,334) |
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Treasury
stock, at cost |
(1,425) |
(1,423) |
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TOTAL S/HOLDERS` EQUITY |
115,956 |
110,458 |
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TOTAL EQUITIES |
582,404 |
532,797 |
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CONSOLIDATED CASH FLOWS |
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Terms ending: |
31/03/2012 |
31/03/2011 |
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Cash
Flows from Operating Activities |
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11,970 |
-46,948 |
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Cash
Flows from Investment Activities |
-12,009 |
-7,610 |
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Cash
Flows from Financing Activities |
1,596 |
51,271 |
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Cash,
Bank Deposits at the Term End |
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23,411 |
20,586 |
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ANALYTICAL RATIOS Terms ending: |
31/03/2012 |
31/03/2011 |
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Net
Worth (S/Holders' Equity) |
115,956 |
110,458 |
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Current
Ratio (%) |
146.37 |
146.91 |
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Net
Worth Ratio (%) |
19.91 |
20.73 |
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Recurring
Profit Ratio (%) |
0.84 |
0.97 |
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Net
Profit Ratio (%) |
0.30 |
0.41 |
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Return
On Equity (%) |
3.99 |
5.24 |
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FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.54.71 |
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UK Pound |
1 |
Rs.82.79 |
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Euro |
1 |
Rs.71.43 |
INFORMATION DETAILS
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Report Prepared
by : |
PRL |
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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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 |
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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 |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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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.