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MIRA INFORM REPORT
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Report No. : |
498841 |
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Report Date : |
19.03.2018 |
IDENTIFICATION DETAILS
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Name : |
HONDA FOUNDRY CO LTD |
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Registered Office : |
1620 Mature Kawagoe Saitama-Pref 350-1101 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2017 |
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Date of Incorporation : |
December 1963 |
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Com. Reg. No.: |
0300-01-055560 (Saitama-Kawagoe) |
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Legal Form : |
Limited Company (Kabushiki Kaisha) |
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Line of Business : |
Manufactures automobile/motorcycle engines, chassis components,
aluminum alloy parts, die mold coatings, other (--100%) |
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No. of Employees : |
633 |
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd
January 2017)
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MIRA’s Rating : |
A+ |
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Credit Rating |
Explanation |
Rating Comments |
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A+ |
Low Risk |
Business dealings permissible with low
risk of default |
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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
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Country Name |
Previous Rating (30.09.2017) |
Current Rating (31.12.2017) |
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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 Risk |
A2 |
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Moderately Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderately High Risk |
C1 |
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High Risk |
C2 |
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Very High Risk |
D |
JAPAN - ECONOMIC OVERVIEW
Over the past 70 years, government-industry cooperation, a strong work
ethic, mastery of high technology, and a comparatively small defense allocation
(slightly less than 1% of GDP) have helped Japan develop an advanced economy.
Two notable characteristics of the post-World War II 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 have significantly eroded under the dual
pressures of global competition and domestic demographic change.
Measured on a purchasing power parity basis that adjusts for price differences,
Japan in 2017 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. For three postwar decades, overall real economic
growth was impressive - a 10% average in the 1960s, 5% in the 1970s, and 4% in
the 1980s. Growth slowed markedly in the 1990s, averaging just 1.7%, largely
because of the aftereffects of inefficient investment and the collapse of an
asset price bubble in the late 1980s, which entailed considerable 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.
Japan enjoyed an 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. Led by
the Bank of Japan’s aggressive monetary easing, Japan is making modest progress
in ending deflation, but demographic decline – a low birthrate and an aging,
shrinking population – poses a major long-term challenge for the economy. The
government currently faces the quandary of balancing its efforts to stimulate
growth and institute economic reforms with the necessity of addressing its
sizable public debt, which stands at 235% of GDP. To help raise government
revenue, Japan adopted legislation in 2012 to gradually raise the consumption
tax rate. However, the first such increase, in April 2014, led to another
recession, so Prime Minister ABE has twice postponed the next increase, now
scheduled for October 2019. Structural reforms to unlock productivity are seen
as central to strengthening the economy in the long-run.
Scarce in critical natural resources, Japan has long been dependent on
imported energy and raw materials. After the complete shutdown of Japan’s
nuclear reactors following the earthquake and tsunami disaster in 2011, Japan's
industrial sector has become even more dependent than before on imported fossil
fuels. However, ABE’s government is seeking to restart nuclear power plants
that meet strict new safety standards and is emphasizing nuclear energy’s
importance as a base-load electricity source. In August 2015, Japan
successfully restarted one nuclear reactor at the Sendai Nuclear Power Plant in
Kagoshima prefecture, and several other reactors around the country have since
resumed operations; however, opposition from local governments has delayed
several more restarts that remain pending. Reforms of the electricity and gas
sectors, including full liberalization of Japan’s energy market in April 2016
and gas market in April 2017, constitute an important part of Prime Minister
Abe’s economic program.
In October 2015, Japan and 11 trading partners reached agreement on the
Trans-Pacific Partnership (TPP), a pact that had promised to open Japan's
economy to increased foreign competition and create new export opportunities
for Japanese businesses. Japan was the first country to ratify the TPP in
December 2016; the United States signaled its withdrawal from the TPP in
January 2017, and in November 2017 the remaining 11 countries agreed on the
core elements of a modified agreement, which they renamed the Comprehensive and
Progressive Agreement for Trans-Pacific Partnership (CPTPP).
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Source
: CIA |
Company
name & address
HONDA FOUNDRY CO LTD
REGD NAME: Honda
Kinzoku Gijutsu KK
MAIN OFFICE: 1620
Mature Kawagoe Saitama-Pref 350-1101 Japan
Tel:
049-231-1521 Fax: 049-233-1139
URL: http://www.hondakinzoku.co.jp
E-Mail address: (thru the URL)
ACTIVITIES: Mfg
of car engines, chassis components, aluminum alloy parts, die mold
BRANCHES: Fukushima
OVERSEAS: USA
(2), China (4), India, Indonesia, Thailand, Philippines (--factories)
FACTORIES: At
the caption address, Fukushima
OFFICERS: YOSHIICHI TAKAHASHI, PRES Takahiro Suenaga, mgn dir
Takashi Yamanaka,
dir Takenori Yamaguchi, dir
Takashi
Taguchi, dir Yutaka Ito,
dir
Yen Amount: In
million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 18,482 M
PAYMENTS REGULAR CAPITAL Yen 1,260 M
TREND STEADY WORTH Yen
5,225 M
STARTED 1963 EMPLOYES 633
COMMENT: MFR OF CAR ENGINES, COMPONENTS, OTHER, OWNED BY HONDA MOTOR CO LTD.
FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.
HIGHLIGHTS
The subject company was established on the basis of a division separated from Honda Motor Co Ltd (See REGISTRATION). This is a specialized mfr of automobile/motorcycle engines, chassis components, aluminum alloy parts, die mold coatings, other. 80% of the products are manufactures at overseas factories, in addition to domestic factories. Products are shipped to the parent, Honda Motor Co, and other car makers.
FINANCIAL
INFORMATION
The sales volume for Mar/2017 fiscal term amounted to Yen 18,482 million, a 2% up from Yen 18,154 million in the previous term. The recurring profit was posted at Yen 1,607 million and the net profit at Yen 1,705 million, respectively, compared with Yen 604 million recurring profit and Yen 389 million net profit, respectively, a year ago.
For the current term ending Mar 2018 the recurring profit is projected at Yen 1,700 million and the net profit at Yen 1,750 million, respectively, on a 3% rise in turnover, to Yen 19,040 million. Motorcycle sales are expanding in Asia.
The financial situation is considered maintained FAIR and good for ORDINARY business engagements.
REGISTRATION
Date Registered: Dec 1963
Regd No.:
0300-01-055560 (Saitama-Kawagoe)
Legal Status: Limited Company (Kabushiki Kaisha)
Authorized: 10
million shares
Issued: 2.52 million shares
Sum: Yen 1,260 million
Major
shareholders (%): Honda Motor Co Ltd*
(55), Tsutomu Honda (15), Daisuke Honda (15),
Yoko Honda (15)
No. of shareholders: 4
*.. Honda Motor Co Ltd, major car makers ranked 2nd in domestic market, founded 1948, Listed Tokyo S/E, capital Yen 86,067 million, sales Yen 13,999,200 million, operating profit Yen 840,711 million, recurring profit Yen 1,006,986 million, net profit Yen 616,569, total assets Yen 19,527,079 million, net worth Yen 7,693,469 million, employees 211,915, pres Takahiro Hachigo
Nothing detrimental is known as to the commercial morality of executives.
OPERATION
Activities: Manufactures
automobile/motorcycle engines, chassis components, aluminum alloy parts, die
mold coatings, other (--100%)
(Mfg
items): piston, cylinder heads, intake manifold, injector base, hub wheel, swing
arm,
Fork-top bridge, water passage, bracket,
transfer case, other
Clients: [Car makers, car
parts makers] Honda Motor (80%), Subaru, Mitsubishi Motor, Fuji Heavy Ind, Denso
Co, Kawasaki Heavy Ind, Mitsubishi Heavy Ind, Denso Corp, other
No. of accounts:
300
Domestic areas of
activities: Nationwide
Suppliers: [Mfrs,
wholesalers] Honda Motor, Honda Trading, Summit Showa Aluminum, Nikkei MC
Aluminum, Daiki Aluminum Ind, other
Payment record: Regular
Location: Business area in
Kawagoe, Saitama-Pref. Office premises
at the caption address are owned and maintained satisfactorily.
Bank References:
MUFG
(Shimo-Akatsuka)
Saitama Resona
Bank (Kawagoe)
Relations:
Satisfactory
FINANCES
(In Million Yen)
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Terms Ending: |
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31/03/2018 |
31/03/2017 |
31/03/2016 |
31/03/2015 |
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Annual
Sales |
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19,040 |
18,482 |
18,154 |
20,229 |
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Recur.
Profit |
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1,700 |
1,607 |
604 |
987 |
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Net
Profit |
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1,750 |
1,705 |
389 |
845 |
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Total
Assets |
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16,487 |
15,764 |
15,364 |
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Net
Worth |
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5,225 |
3,537 |
3,265 |
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Capital,
Paid-Up |
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1,260 |
1,260 |
1,260 |
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Div.Ttl
in Million (¥) |
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0.00 |
25.50 |
0.00 |
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<Analytical Data> |
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(%) |
(%) |
(%) |
(%) |
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S.Growth Rate |
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3.02 |
1.81 |
-10.26 |
15.21 |
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Current Ratio |
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.. |
.. |
.. |
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N.Worth Ratio |
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31.69 |
22.44 |
21.25 |
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N.Profit/Sales |
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9.19 |
9.23 |
2.14 |
4.18 |
Notes: Forecast (or estimated) figures for the
31/03/2018 fiscal term.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
INR 64.87 |
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1 |
INR 90.49 |
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Euro |
1 |
INR 79.91 |
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YEN |
1 |
INR 0.61 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
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Analysis Done by
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DIV |
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Report Prepared
by : |
TPT |
RATING EXPLANATIONS
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Credit Rating |
Explanation |
Rating Comments |
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A++ |
Minimum Risk |
Business dealings permissible with minimum
risk of default |
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A+ |
Low Risk |
Business dealings permissible with low
risk of default |
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A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
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B |
Medium Risk |
Business dealings permissible on a regular
monitoring basis |
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C |
Medium High Risk |
Business dealings permissible preferably
on secured basis |
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D |
High Risk |
Business dealing not recommended or on
secured terms only |
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NB |
New Business |
No recommendation can be done due to
business in infancy stage |
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NT |
No Trace |
No recommendation can be done as the
business is not traceable |
NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.
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 are as follows:
·
Financial
condition covering various ratios
·
Company
background and operations size
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Promoters
/ Management background
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Payment
record
·
Litigation
against the subject
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Industry
scenario / competitor analysis
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Supplier
/ Customer / Banker review (wherever available)
This report is issued at
your request without any risk and responsibility on the part of MIRA INFORM
PRIVATE LIMITED (MIPL) or its officials.