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Report No. : |
329382 |
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Report Date : |
25.06.2015 |
IDENTIFICATION DETAILS
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Name : |
HONDA TRADING CORPORATION |
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Registered Office : |
Aoyama Bldg 9F, 1-2-3 Kitaaoyama Minatoku Tokyo107-0071 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2014 |
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Date of Incorporation : |
March 1972 |
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Com. Reg. No.: |
0104-01-097576 |
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Legal Form : |
Limited Company |
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Line of Business : |
Trading house for import, export and wholesale of: steels, steel products (23.0%), automobile parts & components, including knockdown parts (44.0%), nonferrous metals (26.0%), synthetic resins, marine & farm products, pulp & paper, lumber (7.0%). |
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No. of Employees : |
313 |
RATING & COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Status : |
Good |
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Payment Behaviour : |
Regular |
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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, 2015
|
Country Name |
Previous Rating (31.12.2014) |
Current Rating (31.03.2015) |
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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 an
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. Scarce in many
natural resources, Japan has long been dependent on imported raw materials.
Since the complete shutdown of Japan’s nuclear reactors after the earthquake
and tsunami disaster in 2011, Japan's industrial sector has become even more
dependent than it was previously on imported fossil 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 impressive - 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 aftereffects 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. 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 of that year disrupted
manufacturing. The economy has largely recovered in the four years since the
disaster, although reconstruction in the affected Tohoku region has lagged, in
part due to a shortage of labor in the construction sector. Japan enjoyed a
sharp uptick in growth in 2013 on the basis of Prime Minister Shinzo Abe’s
“Three Arrows” economic revitalization agenda - dubbed “Abenomics” - of
monetary easing, “flexible” fiscal policy, and structural reform. Abe’s
government has replaced the preceding administration’s plan to phase out
nuclear power with a new policy of seeking to restart nuclear power plants that
meet strict new safety standards, and emphasizing nuclear energy’s importance
as a base-load electricity source. Japan joined the Trans-Pacific Partnership
(TPP) 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. While seeking to stimulate and reform the
economy, the government must also devise a strategy for reining in Japan's huge
government debt, which amounts to more than 230% of GDP. To help raise
government revenue, Japan adopted legislation in 2012 to gradually raise the
consumption tax rate to 10% by 2015, beginning with a hike from 5% to 8%
implemented in April 2014. That increase had a contractionary effect on GDP,
however, so PM Abe in late 2014 decided to postpone the final phase of the
increase until April 2017 to give the economy more time to recover. Led by the
Bank of Japan’s aggressive monetary easing, Japan is making progress in ending
deflation, but demographics - low birthrate and an aging, shrinking population
- pose major long-term challenges for the economy.
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Source
: CIA |
HONDA TRADING CORPORATION
REGD NAME: KK
Honda Trading
MAIN OFFICE: Aoyama
Bldg 9F, 1-2-3 Kitaaoyama Minatoku Tokyo107-0071 JAPAN
Tel: 03-3402-1100
Fax: 03-3402-1101
URL: http://www.hondatrading-jp.com/
E-Mail address: (thru
the URL)
ACTIVITIES: Import,
export, wholesale of steels, machinery, nonferrous metals, seafood, other
BRANCHES: Nagoya,
Osaka, Tochigi, Saitama, Gunma, Suzuka (Shizuoka), Kumamoto
OVERSEAS: USA (5), Brazil (3), Europe (4), Thailand
(3), China (4), Taiwan (2), Canada, Mexico, India, Indonesia, Korea, other (Tot
54 over 21 countries) (--subsidiaries & affiliates)
OFFICER(S): HIROYUKI
YAMADA, PRES Miki Yamamoto, s/mgn
dir
Hiroshi Sekiguchi, s/mgn
dir Shoichi Osawa, mgn dir
Shigeki Takane, dir
Yen Amount: In million Yen, unless otherwise stated
FINANCES FAIR A/SALES Yen 278,751 M
PAYMENTSREGULAR CAPITAL Yen 1,600 M
TREND STEADY WORTH Yen 20,852 M
STARTED 1951 EMPLOYES 313
COMMENT: GENERAL
TRADING HOUSE, WHOLLY OWNED BY HONDA MOTOR CO LTD. FINANCIAL SITUATION CONSIDERED FAIR AND GOOD
FOR ORDINARY BUSINESS ENGAGEMENTS.
The subject company was established on the basis of an overseas trading division separated from Honda Motor Co Ltd, nation’s leading carmaker, Tokyo (see REGISTRATION). This is a general trading house for import, export and wholesale of steels, auto parts & components, machinery, nonferrous metals, synthetic resins, marine & farm products, lumber, other. Supplies to the parent: steels, imported aluminum products, parts & components; and exports Honda’s car knockdown parts & components. In 2013, opened offices in Korea, Mexico and Germany, due to the expansion of production by the parent, Honda Motor Co. Actively expanding into non-Honda clients/networks. Covers about 20 countries in Europe, Asia, China, other.
The sales volume for Mar/2014 fiscal term amounted to Yen 278,751 million, a 4% up from Yen 269,297 million in the previous term. The recurring profit was posted at Yen 9,257 million and the net profit at Yen 6,479 million, respectively, compared with Yen 5,585 million recurring profit and Yen 3,739 million net profit, respectively, a year ago. .
For the term that ended Mar 2015 the recurring profit was projected at Yen 9,550 million and the net profit at Yen 6,650 million, respectively, on a 5% rise in turnover, to Yen 292,500 million. Final results are yet to be released.
The financial situation is considered FAIR and good for
ORDINARY business engagements.
Date Registered:
Mar 1972
Regd No.:
0104-01-097576
(Tokyo-Minatoku)
Legal Status: Limited
Company (Kabushiki Kaisha)
Authorized: 6.4
million shares
Issued: 1.6
million shares
Sum: Yen
1,600 million
Major shareholders (%): Honda
Motor Co Ltd*(100)
*.. Major carmaker ranking in 2nd
in domestic market, Tokyo, founded 1948, listed Tokyo S/E, capital Yen 86,067
million, sales Yen 12,546,747 million, operating profit Yen 651,678 million,
recurring profit Yen 689,609 million, net profit Yen 522,764 million, total
assets Yen 18,075,363 million, net worth Yen 6,964,203 million, employees
198,561, pres Takanobu Ito
Nothing
detrimental is known as to the commercial morality of executives.
Activities: Trading house for import, export and wholesale of: steels, steel products (23.0%), automobile parts & components, including knockdown parts (44.0%), nonferrous metals (26.0%), synthetic resins, marine & farm products, pulp & paper, lumber (7.0%).
Exports (62%)
Clients: [Mfrs, wholesalers] Honda Motor, Honda Trading America, Honda Trading Europe, Honda Trading Thailand, Honda Trading China, Honda Trading Vietnam, Miyuki Industries Thailand, Steel Center, Asahi Seiren, Miyuki Industries, other.
No. of accounts: 1,000
Domestic areas of activities: Nationwide
Suppliers: [Mfrs, wholesalers] Nippon Steel & Sumitomo Metal, Honda Trading America, Honda Trading Europe, Honda Motor, Honda Engineering, JFE Steel, Matsushita Electric Ind, Allis Sanyo, Tanaka Seimitsu Kogyo, other.
Payment record: Regular
Location: Business area in
Tokyo. Office premises at the caption
address are leased and maintained satisfactorily.
Bank References:
MUFG (H/O)
Mitsubishi UFJ
Trust Bank (H/O)
Relations:
Satisfactory
(In Million
Yen)
|
Terms Ending: |
31/03/2015 |
31/03/2014 |
31/03/2013 |
31/03/2012 |
|
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Annual
Sales |
|
292,500 |
278,751 |
269,297 |
286,157 |
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Recur.
Profit |
|
9,550 |
9,257 |
5,585 |
4,968 |
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Net
Profit |
|
6,650 |
6,479 |
3,739 |
-39 |
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Total
Assets |
|
|
91,562 |
82,873 |
92,484 |
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Current
Assets |
|
|
78,772 |
69,714 |
78,637 |
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Current
Liabs |
|
|
69,405 |
68,794 |
80,757 |
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Net
Worth |
|
|
20,852 |
14,698 |
10,938 |
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Capital,
Paid-Up |
|
|
1,600 |
1,600 |
1,600 |
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Div.P.Share(¥) |
|
|
205.00 |
0.00 |
0.00 |
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<Analytical Data> |
|
(%) |
(%) |
(%) |
(%) |
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S.Growth Rate |
|
4.93 |
3.51 |
-5.89 |
-6.53 |
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Current Ratio |
|
.. |
113.50 |
101.34 |
97.37 |
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N.Worth Ratio |
|
.. |
22.77 |
17.74 |
11.83 |
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R.Profit/Sales |
|
3.26 |
3.32 |
2.07 |
1.74 |
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N.Profit/Sales |
|
2.27 |
2.32 |
1.39 |
-0.01 |
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Return On Equity |
|
.. |
31.07 |
25.44 |
-0.36 |
Notes: Forecast
(or estimated figures) for the 31/03/2015 fiscal term
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.63.66 |
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|
1 |
Rs.100.50 |
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Euro |
1 |
Rs.71.31 |
INFORMATION DETAILS
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Analysis Done by
: |
KAS |
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Report Prepared
by : |
TPT |
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.