|
Report No. : |
345348 |
|
Report Date : |
16.10.2015 |
IDENTIFICATION DETAILS
|
Name : |
HANWA CO LTD |
|
|
|
|
Registered Office : |
3-6-1 Kitakyuhonji-machi Chuoku Osaka 541-8585 |
|
|
|
|
Country : |
Japan |
|
|
|
|
Financials (as on) : |
31.03.2014 |
|
|
|
|
Date of Incorporation : |
Apr 1947 |
|
|
|
|
Com. Reg. No.: |
1200-01-077530 |
|
|
|
|
Legal Form : |
Limited Company |
|
|
|
|
Line of Business : |
Import, export, wholesale of steel products, nonferrous metals,
foods, chemicals, petroleum products, machinery, lumber |
|
|
|
|
No. of Employees : |
2,566 |
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 |
|
Status : |
Satisfactory |
|
Payment Behaviour : |
Slow but correct |
|
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) |
|
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 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 first-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.
|
Source
: CIA |
HANWA CO LTD
REGD NAME: Hanwa
Kogyo KK
MAIN OFFICE: 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
Import, export, wholesale of steel products,
nonferrous metals, foods, chemicals, petroleum products, machinery, lumber,
other.
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
PAYMENTSSLOW BUT
CORRECTCAPITAL 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 |
|
|
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: 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: Slow but correct
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
(In
Million Yen)
|
FINANCES: (Consolidated
in million yen) |
||||
|
|
|
Terms Ending: |
31/03/2014 |
31/03/2013 |
|
INCOME STATEMENT |
||||
|
Annual Sales |
|
1,682,503 |
1,511,324 |
|
|
Cost of Sales |
1,631,138 |
1,466,562 |
||
|
GROSS PROFIT |
51,365 |
44,762 |
||
|
Selling & Adm Costs |
36,112 |
32,271 |
||
|
OPERATING PROFIT |
16,252 |
12,491 |
||
|
Non-Operating P/L |
-1,554 |
-3,620 |
||
|
RECURRING PROFIT |
14,698 |
8,871 |
||
|
|
NET PROFIT |
7,896 |
4,720 |
|
|
BALANCE SHEET |
||||
|
Cash |
|
16,007 |
23,285 |
|
|
Receivables |
317,846 |
293,752 |
||
|
Inventory |
114,694 |
96,609 |
||
|
Securities, Marketable |
2,000 |
|
||
|
Other Current Assets |
17,778 |
21,655 |
||
|
TOTAL CURRENT ASSETS |
468,325 |
435,301 |
||
|
Property & Equipment |
61,574 |
55,067 |
||
|
Intangibles |
1,858 |
736 |
||
|
Investments, Other Fixed Assets |
61,594 |
61,804 |
||
|
TOTAL ASSETS |
593,351 |
552,908 |
||
|
Payables |
180,363 |
164,301 |
||
|
Short-Term Bank Loans |
95,605 |
113,500 |
||
|
|
|
|
||
|
Other Current Liabs |
43,393 |
44,161 |
||
|
TOTAL CURRENT LIABS |
319,361 |
321,962 |
||
|
Debentures |
30,000 |
20,000 |
||
|
Long-Term Bank Loans |
104,280 |
80,625 |
||
|
Reserve for Retirement Allw |
1,482 |
220 |
||
|
Other Debts |
|
12,866 |
9,426 |
|
|
TOTAL LIABILITIES |
467,989 |
432,233 |
||
|
MINORITY INTERESTS |
||||
|
Common
stock |
45,651 |
45,651 |
||
|
Additional
paid-in capital |
4 |
4 |
||
|
Retained
earnings |
76,520 |
72,867 |
||
|
Evaluation
p/l on investments/securities |
7,484 |
2,667 |
||
|
Others |
(2,856) |
919 |
||
|
Treasury
stock, at cost |
(1,442) |
(1,434) |
||
|
TOTAL S/HOLDERS` EQUITY |
125,361 |
120,674 |
||
|
|
TOTAL EQUITIES |
593,351 |
552,908 |
|
|
CONSOLIDATED CASH FLOWS |
||||
|
Terms ending: |
31/03/2014 |
31/03/2013 |
||
|
Cash
Flows from Operating Activities |
|
343 |
19,380 |
|
|
Cash Flows
from Investment Activities |
-5,244 |
-5,106 |
||
|
Cash
Flows from Financing Activities |
-4,927 |
-16,363 |
||
|
|
Cash,
Bank Deposits at the Term End |
|
15,919 |
23,198 |
|
ANALYTICAL RATIOS Terms ending: |
31/03/2014 |
31/03/2013 |
||
|
Net
Worth (S/Holders' Equity) |
125,361 |
120,674 |
||
|
Current
Ratio (%) |
146.64 |
135.20 |
||
|
Net
Worth Ratio (%) |
21.13 |
21.83 |
||
|
Recurring
Profit Ratio (%) |
0.87 |
0.59 |
||
|
Net
Profit Ratio (%) |
0.47 |
0.31 |
||
|
Return
On Equity (%) |
6.30 |
3.91 |
||
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.64.82 |
|
|
1 |
Rs.100.41 |
|
Euro |
1 |
Rs.74.50 |
INFORMATION DETAILS
|
Analysis Done by
: |
RAS |
|
|
|
|
Report Prepared
by : |
ASH |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.