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Report No. : |
315791 |
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Report Date : |
15.04.2015 |
IDENTIFICATION DETAILS
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Name : |
HOWA TEXTILE INDUSTRY CO LTD |
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Registered Office : |
3-10-4 Ajiyoshihakusancho Kasugai City Aichi-Pref 186-0969 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2014 |
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Date of Incorporation : |
Dec., 2008 |
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Com. Reg. No.: |
1800-01-078288 (Aichi-Kasugai) |
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Legal Form : |
Limited Company (Kabushiki Kaisha) |
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Line of Business : |
Manufacturer of Automotive Interior Parts,
Household Electrical Goods. |
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No. of Employees : |
633 |
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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Maximum Credit Limits : |
Yen 1,055.0 Million |
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Status : |
Good |
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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 – December 31, 2014
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Country Name |
Previous Rating (30.09.2014) |
Current Rating (31.12.2014) |
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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.
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.
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Source
: CIA |
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)
Mfg of automotive interior parts, household
electrical goods
Tokyo
USA, China, Thailand
Iwate, Tochigi,
Atsugi, Iwata, Gifu, Kyushu, Okazaki; Overseas: USA, China, Indonesia, Mexico,
Canada, France, Slovakia, Spain, Russia
(--subsidiaries)
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
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
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.
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.
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.
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.
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
(In
Million Yen)
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Terms Ending: |
31/03/2015 |
31/03/2014 |
31/03/2013 |
31/03/2012 |
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Annual Sales |
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38,650
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36,829
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40,739
|
47,830
|
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Recur. Profit |
|
680 |
663 |
834 |
2,517 |
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Net Profit |
|
450 |
439 |
493 |
1,560 |
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Total Assets |
|
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26,684
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27,756
|
27,674
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Current Assets |
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10,788
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11,783
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17,522
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Current Liabs |
|
|
9,034 |
9,810 |
16,384
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Net Worth |
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9,312 |
9,840 |
10,314
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Capital, Paid-Up |
|
|
302 |
302 |
302 |
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Div.P.Share(¥) |
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1,600.00
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1,600.00
|
1,600.00 |
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<Analytical
Data> |
|
(%) |
(%) |
(%) |
(%) |
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S.Growth Rate |
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4.94 |
-9.60 |
-14.83
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3.30 |
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Current Ratio |
|
.. |
119.42
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120.11
|
106.95
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N.Worth Ratio |
|
.. |
34.90 |
35.45 |
37.27 |
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R.Profit/Sales |
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1.76 |
1.80 |
2.05 |
5.26 |
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N.Profit/Sales |
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1.16 |
1.19 |
1.21 |
3.26 |
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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 |
|
|
1 |
Rs.91.60 |
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Euro |
1 |
Rs.66.49 |
INFORMATION DETAILS
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Analysis Done by
: |
SUB |
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Report Prepared
by : |
NIT |
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 |
-- |
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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.