Honda Motor Co., Ltd. and its subordinates grow, make, distribute and provide financing for the sale of its various products like motorcycles, automobiles and power products. Honda’s manufacturing operations are basically carried out in thirty one different plants. Five such factories are to be found in Japan.
The main foreign manufacturing facilities are situated in different locations, like the United States of America, Canada, Mexico, the United Kingdom, France, Italy, Spain, India, Indonesia, Malaysia, Pakistan, the Philippines, Taiwan, Thailand, Vietnam, Brazil and Turkey.
The net sales and other business income, by way of performance, for the year ended March 31, 2004 were derived from the various products’ sales. The motorcycle business contributed 12.2 percent, automobile business amounted for 80.8 percent,the financial services chipped in with three percent ,the power products and other businesses were worth four percent.
The performance income through different activities for the economic year that ended on March 31, 2004 was achieved from the different products. The motorbikes were worth 7.1 percent, the automobile business accounted for 73.1 percent, the different financial services 18.1 percent, and the power products and other businesses were worth 1.7 percent.
The total assets as on March 31, 2004 could be attributed to the motorcycle business, which was 9.2 percent, the automobile business, which was 44.7 percent,the various financial services were worth 45.9 percent; the power products and other businesses were three percent, and the corporate assets, which is the net income of company’s accounts, that have been left out in consolidation, were 2.8 percent.
Honda deals in motorbikes,vehicles and power products in most of the countries around the world. For the financial year that ended on March 31, 2004,seventy seven percent of net sales and other business earnings, which are 6,283,459 million yens or 59,452 million dollars, was gained from the subordinates that had been operating outside Japan.
In the financial year of 2003 the figure was 5,995,981 million yens. In the economic year of 2002 the sum was 5,274,673 million yens. Net sales and other corporate income for the economic year, that ended on March 31, 2004 has been geographically broken down based on the location of consumers and the list is as follows: Japan- twenty percent, North America- 55.7 percent, Europe- 9.4 percent, Asia 9.8 percent and others were 5.1 percent.
For the financial year ending on March 31, 2004, 67.4 percent of the operating income, which is 404,464 million yens, or 3,827 million dollars was contributed by overseas subsidiaries. This account however, disregards the impact of elimination of unrealized profits between domestic business and overseas business.
For the financial Year of 2003, the sum was 519,901 million yens. For the economic year of 2002, it was 439,192 million yens. Also, 68.3 percent of Honda’s properties on March 31, 2004 may be attributed to foreign operations. In the financial year of 2004 it was 5,688,405 million yens, or 53,822 million dollars. In the economic year of 2003 the sum was 5,190,627 million yen.
The Honda Motor Company and its domestic subordinates and affiliates keep their respective books of account in accordance to the economic accounting norms of Japan. The overseas subordinates and affiliates usually keep their books of account in compliance with those of the countries of their operations or business activities.
The consolidated financial statements, presented, are usually prepared in a certain way and symbolize the negotiations which may be needed to conform them with the accounting principles, that are generally accepted, as well as adhered to, in the United States of America.
Last Updated on : 1st August 2013