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Report Date : |
03.05.2014 |
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) : |
31.03.2013 |
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Date of Incorporation : |
April 1947 |
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Com. Reg. No.: |
1200-01-077530 |
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Legal Form : |
Limited Company (Kabushiki Kaisha) |
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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 |
2,614 |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
|
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Status : |
Satisfactory |
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Payment Behaviour : |
Slow but correct |
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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 – March 31, 2014
|
Country Name |
Previous Rating (31.12.2013) |
Current Rating (31.03.2014) |
|
Japan |
A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low Risk |
A2 |
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Moderate Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderate High Risk |
C1 |
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High Risk |
C2 |
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Very High Risk |
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
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Source
: CIA |
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
Import, export, wholesale of steel products,
nonferrous metals, foods, chemicals, petroleum products, machinery, lumber,
other.
Tokyo, Nagoya,
Sendai, Kitakyushu, Sapporo, Sendai, Fukuoka, other (Tot 62)
N America (6),
Asia (13), China (10), Europe & Mid East (8)
HIRONARI FURUKAWA,
PRES & CEO
Yen Amount: In million Yen, unless otherwise stated
FINANCES FAIR A/SALES Yen 1,511,324 M
PAYMENTS SLOW BUT CORRECT CAPITAL Yen 45,651
M
TREND SLOW WORTH Yen
120,674 M
STARTED 1947 EMPLOYES 2,614
TRADING HOUSE SPECIALIZING IN STEEL PRODUCTS.
FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS
ENGAGEMENTS.
|
Business |
Terms Ending |
Annual Sales* |
R.Profit* |
N.Profit* |
S.Growth |
Net Worth* |
|
Results: |
31/03/2010 |
1,116,628 |
9,412 |
11,579 |
(%) |
106,855 |
|
(Consolidated) |
31/03/2011 |
1,396,103 |
13,490 |
5,793 |
25.03 |
110,458 |
|
31/03/2012 |
1,564,250 |
13,116 |
4,632 |
12.04 |
115,956 |
|
|
31/03/2013 |
1,511,324 |
8,871 |
4,720 |
-3.38 |
120,674 |
|
|
31/03/2014 |
1,660,000 |
14,000 |
8,200 |
9.84 |
.. |
Notes: Unit: In Million Yen
Forecast (or estimated) figures for 31/03/2014
fiscal term
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. It will also accelerate advances overseas in
the medium term, where demand for steel products is robust.
The sales volume for Mar/2013 fiscal term amounted to Yen 1,511,324 million,
a 3.4% down from Yen 1,564,250 million in the previous term. The recurring profit was posted at Yen 8,871
million and the net profit at Yen 4,720 million, respectively, compared with
Yen 13,116 million recurring profit and Yen 4,632 million net profit,
respectively, a year ago.
(Apr/Dec/2013 results): Sales Yen 1,227,678 million (up 10.1%),
operating profit Yen 11,476 million (up 38.0%), recurring profit Yen 16,797
million (up 82.3%), net profit Yen 5,922 million (up 79.0%). (% compared with
the corresponding period a year ago).
For the term that ended Mar 2014 the recurring profit was projected at
Yen 14,000 million and the net profit at Yen 8,200 million, respectively, on a
9.8% rise in turnover, to Yen 1,660,000 million. Mainline steel wholesaling rose. Price hikes also penetrated, and gross profit
would improve. Final results are yet to
be released.
The financial situation is considered FAIR and good for ORDINARY
business engagements.
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 (8.2), 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: 10,290
Listed on the S/Exchange (s) of: Tokyo
Managements: Shuji Kita, ch;
Hironari Furukawa, pres; Tetsuro Akimoto, v pres; Hideo Kawanishi, s/mgn dir,
Yoshifumi Nishi, s/mgn dir; Hiroshi Serizawa, s/mgn dir; Hiroshi Ebihara, s/mgn
dir; Akihiko Ogasawara, s/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
Activities: A trading house
for import, export and wholesale of:
(Sales
Breakdown by Divisions)
Steel Div (46%): steel bars,
shapes, construction materials, wire rods, steel sheets, other;
Steel Materials
Div (6%); forged iron, cast iron, special steel wires, screws;
Non-Ferrous
Metal Div (5%): aluminum, copper, nickel, chromium, zinc (recycling);
Foods
Div (6%): prawns, crab, other seafoods;
Petroleum
& Chemicals Div (29%): fuels, petrochemicals, other;
Other
Div (8%): lumber, plywood, logs, building materials, other.
Overseas
sales ratio (25%)
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, Hanwa American Corp, other.
Imports from; USA, Canada, Chile, Finland,
Sweden, Norway, Russia, China, Indonesia, other
Payment record: Slow but correct
Location: Business area in
Osaka. Office premises at the caption
address are owned and maintained satisfactorily.
Bank References:
SMBC (Tokyo-Chuo)
Mizuho Bank (H/O)
Relations:
Satisfactory
(In Million Yen)
|
FINANCES: (Consolidated
in million yen) |
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Terms Ending: |
31/03/2013 |
31/03/2012 |
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INCOME STATEMENT |
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Annual Sales |
|
1,511,324 |
1,564,250 |
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Cost of Sales |
1,466,562 |
1,517,904 |
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GROSS PROFIT |
44,762 |
46,346 |
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Selling & Adm Costs |
32,271 |
31,369 |
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OPERATING PROFIT |
12,491 |
14,976 |
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Non-Operating P/L |
-3,620 |
-1,860 |
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RECURRING PROFIT |
8,871 |
13,116 |
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NET PROFIT |
4,720 |
4,632 |
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BALANCE SHEET |
||||
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Cash |
|
23,285 |
23,548 |
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Receivables |
293,752 |
301,035 |
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Inventory |
96,609 |
110,908 |
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Securities, Marketable |
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Other Current Assets |
21,655 |
32,491 |
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TOTAL CURRENT ASSETS |
435,301 |
467,982 |
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Property & Equipment |
65,067 |
56,387 |
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Intangibles |
736 |
629 |
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Investments, Other Fixed Assets |
51,804 |
57,406 |
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TOTAL ASSETS |
552,908 |
582,404 |
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Payables |
164,301 |
186,810 |
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Short-Term Bank Loans |
113,500 |
99,412 |
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Other Current Liabs |
44,161 |
33,513 |
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TOTAL CURRENT LIABS |
321,962 |
319,735 |
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Debentures |
20,000 |
20,050 |
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Long-Term Bank Loans |
80,625 |
116,738 |
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Reserve for Retirement Allw |
220 |
191 |
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Other Debts |
|
9,426 |
9,734 |
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TOTAL LIABILITIES |
432,233 |
466,448 |
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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 |
72,867 |
69,978 |
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Evaluation
p/l on investments/securities |
2,667 |
2,084 |
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Others |
919 |
(336) |
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Treasury
stock, at cost |
(1,434) |
(1,425) |
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TOTAL S/HOLDERS` EQUITY |
120,674 |
115,956 |
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TOTAL EQUITIES |
552,908 |
582,404 |
|
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CONSOLIDATED CASH FLOWS |
||||
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Terms ending: |
31/03/2013 |
31/03/2012 |
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Cash
Flows from Operating Activities |
|
19,380 |
11,970 |
|
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Cash
Flows from Investment Activities |
-5,106 |
-12,009 |
||
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Cash
Flows from Financing Activities |
-16,363 |
1,596 |
||
|
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Cash,
Bank Deposits at the Term End |
|
12,198 |
23,411 |
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ANALYTICAL RATIOS Terms ending: |
31/03/2013 |
31/03/2012 |
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Net
Worth (S/Holders' Equity) |
120,674 |
115,956 |
||
|
Current
Ratio (%) |
135.20 |
146.37 |
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Net
Worth Ratio (%) |
21.83 |
19.91 |
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Recurring
Profit Ratio (%) |
0.59 |
0.84 |
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Net
Profit Ratio (%) |
0.31 |
0.30 |
||
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Return
On Equity (%) |
3.91 |
3.99 |
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FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.60.23 |
|
|
1 |
Rs.101.68 |
|
Euro |
1 |
Rs.83.46 |
INFORMATION DETAILS
|
Analysis Done by
: |
RAS |
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Report Prepared
by : |
NIS |
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 |
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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 |
-- |
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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.