MIRA INFORM REPORT

 

 

Report No. :

315791

Report Date :

15.04.2015

 

IDENTIFICATION DETAILS

 

Name :

HOWA TEXTILE INDUSTRY CO LTD

 

 

Registered Office :

3-10-4 Ajiyoshihakusancho Kasugai City Aichi-Pref 186-0969

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2014

 

 

Date of Incorporation :

Dec., 2008

 

 

Com. Reg. No.:

1800-01-078288 (Aichi-Kasugai)

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Manufacturer of Automotive Interior Parts, Household Electrical Goods.

 

 

No. of Employees :

633

 

 

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

 

 

Maximum Credit Limits :

Yen 1,055.0 Million

 

 

Status :

Good

 

 

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 – December 31, 2014

 

Country Name

Previous Rating

(30.09.2014)

Current Rating

(31.12.2014)

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. Since the complete shutdown of Japan’s nuclear reactors after the earthquake and tsunami disaster in 2011, Japan's industrial sector has become 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 four 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. A sales tax increase caused the economy to contract during the 2nd and 3rd quarters of 2014. The economy has largely recovered in the three years since the disaster, but reconstruction in the Tohoku region has been uneven due to labor shortages. 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 2014 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 government will continue a longstanding debate on restructuring the economy and reining in Japan's huge government debt, which amounts to more than 240% 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 2015, although the government in 2014 decided to postpone the final phase of the increase until 2017 to give the economy time to recover from the 2014 increase. 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 and address

 

HOWA TEXTILE INDUSTRY CO LTD

 

REGD NAME:               KK Howa Sen’i Kogyo

 

MAIN OFFICE:              3-10-4 Ajiyoshihakusancho Kasugai City Aichi-Pref 186-0969 JAPAN

                                                Tel: 0568-34-8180     

 

URL:                             http://www.howatextile.com

E-Mail address:            (thru the URL)

 

 

ACTIVITIES

 

Mfg of automotive interior parts, household electrical goods

 

 

BRANCHES

 

Tokyo

 

 

OVERSEAS   

 

USA, China, Thailand

 

 

FACTORIES

 

Iwate, Tochigi, Atsugi, Iwata, Gifu, Kyushu, Okazaki; Overseas: USA, China, Indonesia, Mexico, Canada,  France, Slovakia, Spain, Russia (--subsidiaries)

 

 

OFFICERS

 

AKIYORI SHIBUYA, PRES         Yasushi Shibuya, ch     

Tatsuro Itoh, s/mgn dir               Atsushi Nokubo, mgn dir

Yoshiaki Kato, mgn dir              Masahito Tanaka, mgn dir

                       

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                             A/SALES                      Yen 36,829 M

PAYMENTSNO COMPLAINTS    CAPITAL                       Yen 302 M

TREND SLOW                           WORTH                       Yen 9,312 M     

STARTED         2008                             EMPLOYES                  633

 

 

COMMENT

 

MFR OF AUTOMOTIVE INTERIOR PARTS.

 

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

MAX CREDIT LIMIT: ESTIMATED AT YEN 1,055.0 MILLION, ON 30 DAYS NORMAL TERMS.

 

 

HIGHLIGHTS

           

The subject company was established by Akiyori Shibuya in order to make most of his experience in the subject line of business.  This is a specialized mfr of automotive interior parts & decorations: roof & floor silencer, dash insulator, other (See OPERATION). Operates subsidiaries plants in USA, China, Europe, Asia, other. Clients include major auto makers nationwide and worldwide.

 

 

FINANCIAL INFORMATION

           

The sales volume for Mar/2014 fiscal term amounted to Yen 36,829 million, a 10% down from Yen 40,739 million in the previous term. The recurring profit was posted at Yen 663 million and the net profit at Yen 439 million, respectively, compared with Yen 834 million recurring profit and Yen 493 million net profit, respectively, a year ago.

 

For the term that ended Mar 2015 the recurring profit was projected at Yen 680 million and the net profit at Yen 450 million, respectively, on a 5% rise in turnover, to Yen 58,650 million. 

Final results are yet to be released.

 

The financial situation is considered FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 1,055.0 million, on 30 days normal terms.

 

 

REGISTRATION

    

Date Registered:                       Dec 2008

Regd No.:                                 1800-01-078288 (Aichi-Kasugai)

Legal Status:                Limited Company (Kabushiki Kaisha)

Authorized:                  2.4 million shares

Issued:                         604,000 shares

Sum:                            Yen 302 million

Major shareholders (%):           Howa Holdings Inc* (100)

                          *..         Holding Company

 

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

 

 

OPERATION

           

Activities: Manufactures automotive parts/accessories, household electrical goods: Roof silencer, floor silencer, dash insulator, seal cushion, headliner, package tray, engine cover, dash insulator, floor silencer, headliner, sunshade trim, fuel tank band pad, fuel tank pad, deck side trim, luggage door trim, others (--100%)

 

Clients: [Mfrs, wholesalers] Toyota Motor, Nissan Motor, Honda Motor, Mitsubishi Motor, other 

No. of accounts: 300

Domestic areas of activities: Nationwide/worldwide

 

Suppliers: [Mfrs, wholesalers] Sumitomo Corp, Nihon Plast Co, Hayashi Telempu Co, Toyota Tsusho Corp, other

 

Payment record: No Complaints

 

Location: Business area in Kasugai City, Aichi-Pref.  Office premises at the caption address are owned and maintained satisfactory.

 

Bank References:

            SMBC (Nagoya-Ekimae)

            Mizuho Bank (Nagoya)

            Relations: Satisfactory

 

 

FINANCES

(In Million Yen)

 

       Terms Ending:

31/03/2015

31/03/2014

31/03/2013

31/03/2012

Annual Sales

 

38,650

36,829

40,739

47,830

Recur. Profit

 

680

663

834

2,517

Net Profit

 

450

439

493

1,560

Total Assets

 

 

26,684

27,756

27,674

Current Assets

 

 

10,788

11,783

17,522

Current Liabs

 

 

9,034

9,810

16,384

Net Worth

 

 

9,312

9,840

10,314

Capital, Paid-Up

 

 

302

302

302

Div.P.Share(¥)

 

 

1,600.00

1,600.00

1,600.00

<Analytical Data>

 

(%)

(%)

(%)

(%)

    S.Growth Rate

 

4.94

-9.60

-14.83

3.30

    Current Ratio

 

..

119.42

120.11

106.95

    N.Worth Ratio

 

..

34.90

35.45

37.27

    R.Profit/Sales

 

1.76

1.80

2.05

5.26

    N.Profit/Sales

 

1.16

1.19

1.21

3.26

    Return On Equity

 

..

4.71

5.01

15.13

 

Notes: Forecast (or estimated) figures for the 31/03/2015 fiscal term.

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.62.37

UK Pound

1

Rs.91.60

Euro

1

Rs.66.49

 

INFORMATION DETAILS

 

Analysis Done by :

SUB

 

 

Report Prepared by :

NIT

 

               

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.