MIRA INFORM REPORT

 

 

Report Date :

04.12.2014

 

 

IDENTIFICATION DETAILS

 

Name :

HONDA ELECTRON CO., LTD. 

 

 

Registered Office :

1-23-19, Asahi-cho, Machida-shi, Tokyo 194-0023

 

 

Country :

Japan

 

 

Financials (as on) :

31.05.2012

 

 

Date of Incorporation :

19.12.1968

 

 

Com. Reg. No.:

0123-01-002339 (Tokyo)

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Engaged in development and manufacturing sensors to the pedestrian and industrial automatic door industry worldwide. 

 

 

No of Employees :

60

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Maximum Credit Limit :

US$ 400,000

Status :

Moderate

Payment Behaviour :

Slow but Correct

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 1, 2014

 

Country Name

Previous Rating

(31.03.2014)

Current Rating

(01.06.2014)

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. Prime Minister Shinzo ABE has declared the economy his government's top priority; he has overturned his predecessor's plan to permanently close nuclear power plants and is pursuing an economic revitalization agenda of fiscal stimulus, monetary easing, and structural reform. Japan joined the Trans Pacific Partnership negotiations in 2013, a pact that would open Japan's economy to increased foreign competition and create new export opportunities for Japanese businesses. Measured on a purchasing power parity (PPP) basis that adjusts for price differences, Japan in 2013 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 is exceeding 230% of GDP. To help raise government revenue and reduce public debt, Japan decided in 2013 to gradually increase the consumption tax to a total of 10% by the year 2015. Japan is making progress on ending deflation due to a weaker yen and higher energy costs, but reliance on exports to drive growth and an aging, shrinking population pose other major long-term challenges for the economy.

 

Source : CIA

 

 

 

 


COMPANY NAME

 

HONDA ELECTRON CO., LTD.

 

 

Company OUTLINE

 

Company name:            HONDA ELECTRON CO., LTD.

Name in local language: HONDA DENSHI GIKEN, K.K.

Office address:              1-23-19, Asahi-cho, Machida-shi, Tokyo 194-0023

Country:                       Japan

Office tel:                                  042-725-1911

Office fax:                                  042-729-1424

Website:                                   www.hotron.co.jp  (for group)

Business type:              Manufacturer  

Industry:                                    Sensor

Established:                  December 19, 1968

Capital:                                     Jp. 55,000,000 yen

Employees:                   60

Corporate formation:       Private 

Corporation No.:             0123-01-002339 (Tokyo Legal Affairs Bureau)

 

 

MAJOR SHAREHOLDERS

 

Paid in capital :                          Jp. 55,000,000 yen

Number of authorized shares :     500,000 shares

Shares issued :                         110,000 shares

Number of shareholder :              1

 

Hotron Holdings Inc. holds 100 percent.

 

 

DETAILED PRODUCT CLASSFICATION & ACTIVITY

 

Activity                          Product/Service Description

-------------------------------------------------------------------------------

Manufacturing                Sensor

 

 

COMPANY MANAGEMENT

 

President                      Mr. Tadamori Honda (President of the parent company)

Nationality:                    Japan

 

Director                         Mr. Kanenao Sakamoto

Nationality:                    Japan

 

Director                                     Mr. Takahiro Imai

Nationality:                    Japan

 

Director                                     Mr. Akiya Morimoto

Nationality:                                Japan

 

Auditor                          Mr. Ryoichi Okitsu

Nationality:                    Japan

 

 

Note: The names of director(s) and auditor(s) are phonetically spelt.

 

*Key Personnel*

==============

Mr. Tadamori Honda

President and representative director

Other responsibilities:

President of:

-          Hotron Holdings Inc.

-          Hotron Co., Ltd.

-          Taiwan Hotron Co., Ltd.

-          Hotron Ireland Ltd.

-          Heast Co., Ltd.

Home address: 6-32-8, Seijo, Setagaya-ku, Tokyo

 

 

FINANCIALS

 

Currency: (local currency - Jp. yen)

-------------------------------------------------------------------------------------

 Year |         Sales            |       Net Income    

-------------------------------------------------------------------------------------

2009

1,795,000,000

n. a.

2010

1,560,000,000

n. a.

2011

1,561,000,000

n. a.

2012

1,658,000,000

82,559,000

2013

1,679,000,000

n. a.

2014

1,780,000,000

n. a.

 

 


FINANCIAL DESCRIPTION

 

*Book Closing*

============

May 31st

 

*Financials*

==========

As a private limited company, no official financial statement is required to be disclosed publicly.

 

Available financial statement (Balance sheet) is only for May 2012 term.

 

Balance Sheet

 

Unit: millions of JP yen

 

                          

5/31/2012

Current assets  

899

Fixed assets            

1,385

Total Assets       

2,285

 

 

Current liabilities     

540

Fixed liabilities      

925

Shareholders' equity    

819

 Paid up capital      

45

 Capital reserves      

15

 Retained earnings    

759

Total Liabilities & Net Assets     

2,285

 

 

Bank Details

 

Bank Name :     Bank of Tokyo-Mitsubishi UFJ, Ltd.

Branch :            Toranomon

 

Bank Name :     Sumitomo Mitsui Banking Corp.

Branch :            Jiyugaoka

 

Bank Name :     Tokyo Tomin Bank, Ltd.

Branch :            Head office business banking department

 

 


Credit Opinion

 

The subject is the founding firm of Hotron group companies, owned and headed by Mr. Tadamori Honda, a sensor specialist in the nation.

 

Sales has been picking up since it hit a bottom in 2010.

 

As a whole group the business has been steady with a certain level of net income maintained.

 

A weaker currency would be favorable.

 

Negative factors are not observed in particular at this moment.

 

Our standard suggestion would be up to US$ 400,000 on terms of 90 days.

 

 

PRODUCT, TECHNOLOGY, SERVICE DESCRIPTION

 

*Main Products & Services*

 

Engaged in development and manufacturing sensors to the pedestrian and industrial automatic door industry worldwide. 

 

FACTORY FACILITIES & MANUFACTURING CAPABILITIES

 

At the location of the head office

 

 

ORGANIZATION STRUCTURE

 

*Address*

=========

Registered address is the same as the operational address.

 

 

Company History

 

Date                             Development

-----------------------------------------------------------------------------------------------

August 1967                  Started business in Yokohama City.

December 19, 1968       Incorporated under the current company name in Machida City, Tokyo.

June 1975                     Founded “Hotron Co., Ltd.”

September 1977            Founded “Heast Co., Ltd.”

April 1983                      Relocated the subject to the current address within Machida City.

March 1996                   Founded “Taiwan Hotron Co., Ltd.”

April 1996                      Founded “Hotron (Ireland) Ltd.”

June 1998                     ISO9001 certified.

March 2004                   ISO14001 certified.

April 1, 2013                  Founded “Hotron Holdings Inc.” as the holding company of the whole

group by splitting the subject.

 

 

TRADE REFERENCES

 

*Suppliers*

==========

Renesas Easton Co., Ltd.

Suiko Resins Co., Ltd.

 

 

Masuda Kogyo Co., Ltd.

Taiwan Hotron Co., Ltd.

TKR Corp.

Claire Corp.

Arc Inc.

 

 

*Customers*

==========

Hotron Co., Ltd.

Miyamarin Corp.

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.61.89

UK Pound

1

Rs.96.83

Euro

1

Rs.76.57

 

INFORMATION DETAILS

 

Analysis Done by :

RAS

 

 

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.