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Report Date : |
06.11.2014 |
IDENTIFICATION DETAILS
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Name : |
HANWA CO LTD |
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Registered Office : |
3-6-1 Kitakyuhonji-machi Chuoku Osaka 541-8585 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2014 (Consolidated) |
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Date of Incorporation : |
01.04.1947 |
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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 : |
Subject is a Trading House Subject operates
through following divisions: Steel Division (Steel Bars,
Shapes, Construction Materials, Wire Rods, Steel Sheets) Steel Materials Division (Forged Iron, Cast
Iron, Special Steel Wires, Screws) Non-Ferrous
Metal Division (Aluminum, Copper, Nickel, Chromium, Zinc (Recycling) Foods Division (Prawns, Crab,
Other Seafoods) Petroleum &
Chemicals Division (Fuels, Petrochemicals) Other Division (Lumber, Plywood, Logs, Building Materials) |
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No of Employees : |
2,566 |
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 : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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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 1, 2014
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Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
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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 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
Hanwa Kogyo KK
3-6-1 Kitakyuhonji-machi Chuoku Osaka
541-8585 JAPAN
Tel: 06-7525-5000 Fax: 06-7525-5365
E-Mail
address: info@hanwa.co.jp
Tokyo
Office Address
6-18-2 Ginza, Chuo-ku, Tokyo
104-8429, Japan
Tel. No.:03-3544-2171
Fax No.03-3544-2351
Subject is a
Trading House
Subject operates through
following divisions:
Steel Division
(Steel Bars,
Shapes, Construction Materials, Wire Rods, Steel Sheets)
Steel Materials Division
(Forged Iron, Cast
Iron, Special Steel Wires, Screws)
Non-Ferrous Metal
Division
(Aluminum, Copper, Nickel, Chromium, Zinc (Recycling)
Foods Division
(Prawns, Crab,
Other Seafoods)
Petroleum &
Chemicals Division
(Fuels, Petrochemicals)
Other Division
(Lumber, Plywood, Logs, Building Materials)
Tokyo, Nagoya, Sendai, Kitakyushu, Sapporo, Sendai,
Fukuoka, other (Tot 15)
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 1,682,503 M
PAYMENTSNO COMPLAINTS CAPITAL Yen 45,651 M
TREND UP WORTH Yen 125,361 M
STARTED 1947 EMPLOYES 2,566
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: |
31/03/2011 |
1,396,103 |
13,490 |
5,793 |
(%) |
110,458 |
|
(Consolidated) |
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 |
|
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31/03/2014 |
1,682,503 |
14,698 |
7,896 |
11.33 |
125,361 |
|
|
31/03/2015 |
1,750,000 |
17,500 |
10,600 |
4.01 |
.. |
Notes:
Unit: In Million Yen
Forecast (or estimated)
figures for 31/03/2015 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. The company aims to
strengthen sales-force with buyouts of regional processing businesses and the
startup of a large-scale warehouse.
The sales volume
for Mar/2014 fiscal term amounted to Yen 1,682,503 million, an 11.3% up from
Yen 1,511,324 million in the previous term.
Sales volume of mainline steel rose, thanks to robust public works. Prices improved more than anticipated in the
second half. The recurring profit was
posted at Yen 14,698 million and the net profit at Yen 7,896 million,
respectively, compared with Yen 8,871 million recurring profit and Yen 4,720
million net profit, respectively, a year ago.
For the current
term ending Mar 2015 the recurring profit is projected at Yen 17,500 million
and the net profit at Yen 10,600 million, respectively, on a 4.0% rise in
turnover, to Yen 1,750,000 million.
Steel sales volume will continue to grow. No foreign exchange gain is anticipated. Imported steel prices are rising due to the
weaker Yen, and domestic steel materials prices are also increasing due to the
high material prices. Steel materials
wholesaling will rapidly expand, backed by an upturn in construction demand.
The financial
situation is considered FAIR and good for ORDINARY business engagements.
Date
Registered: 01 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 (8.1), 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 (21.8)
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, v pres;
Yoshifumi Nishi, s/mgn dir; Akihiko Ogasawara, s/mgn dir; Hiroshi Ebihara,
s/mgn dir; Atsuhiro Moriguchi, s/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, other.
Imports from; USA, Canada, Chile, Finland, Sweden, Norway, Russia,
China, Indonesia, other
Payment
record: No Complaints
Location: Business area in Osaka. Office premises at the caption address are
owned and maintained satisfactorily.
Bank
References:
SMBC
(Nipponbashi)
Mizuho
Bank (H/O)
Relations:
Satisfactory
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FINANCES: (Consolidated
in million yen) |
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Terms Ending: |
31/03/2014 |
31/03/2013 |
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INCOME STATEMENT |
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Annual Sales |
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1,682,503 |
1,511,324 |
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Cost of Sales |
1,631,138 |
1,466,562 |
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GROSS PROFIT |
51,365 |
44,762 |
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Selling & Adm Costs |
36,112 |
32,271 |
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OPERATING PROFIT |
16,252 |
12,491 |
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Non-Operating P/L |
-1,554 |
-3,620 |
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RECURRING PROFIT |
14,698 |
8,871 |
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NET PROFIT |
7,896 |
4,720 |
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BALANCE SHEET |
||||
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Cash |
|
16,007 |
23,285 |
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Receivables |
317,846 |
293,752 |
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Inventory |
114,694 |
96,609 |
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Securities, Marketable |
2,000 |
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Other Current Assets |
17,778 |
21,655 |
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TOTAL CURRENT ASSETS |
468,325 |
435,301 |
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Property & Equipment |
61,574 |
55,067 |
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Intangibles |
1,858 |
736 |
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Investments, Other Fixed Assets |
61,594 |
61,804 |
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TOTAL ASSETS |
593,351 |
552,908 |
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Payables |
180,363 |
164,301 |
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Short-Term Bank Loans |
95,605 |
113,500 |
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Other Current Liabs |
43,393 |
44,161 |
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TOTAL CURRENT LIABS |
319,361 |
321,962 |
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Debentures |
30,000 |
20,000 |
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Long-Term Bank Loans |
104,280 |
80,625 |
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Reserve for Retirement Allw |
1,482 |
220 |
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Other Debts |
|
12,866 |
9,426 |
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TOTAL LIABILITIES |
467,989 |
432,233 |
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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 |
76,520 |
72,867 |
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Evaluation
p/l on investments/securities |
7,484 |
2,667 |
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Others |
(2,856) |
919 |
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Treasury
stock, at cost |
(1,442) |
(1,434) |
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TOTAL S/HOLDERS` EQUITY |
125,361 |
120,674 |
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TOTAL EQUITIES |
593,351 |
552,908 |
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CONSOLIDATED CASH FLOWS |
||||
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Terms ending: |
31/03/2014 |
31/03/2013 |
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Cash
Flows from Operating Activities |
|
343 |
19,380 |
|
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Cash
Flows from Investment Activities |
-5,244 |
-5,106 |
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Cash
Flows from Financing Activities |
-4,927 |
-16,363 |
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Cash,
Bank Deposits at the Term End |
|
15,919 |
23,198 |
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ANALYTICAL RATIOS Terms ending: |
31/03/2014 |
31/03/2013 |
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Net
Worth (S/Holders' Equity) |
125,361 |
120,674 |
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Current
Ratio (%) |
146.64 |
135.20 |
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Net
Worth Ratio (%) |
21.13 |
21.83 |
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Recurring
Profit Ratio (%) |
0.87 |
0.59 |
||
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Net
Profit Ratio (%) |
0.47 |
0.31 |
||
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Return
On Equity (%) |
6.30 |
3.91 |
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FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.39 |
|
|
1 |
Rs.98.00 |
|
Euro |
1 |
Rs.76.99 |
INFORMATION DETAILS
|
Report Prepared
by : |
SHG |
RATING EXPLANATIONS
|
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 |
|
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.