MIRA INFORM REPORT

 

 

Report Date :

25.01.2013

 

IDENTIFICATION DETAILS

 

Name :

MITSUBISHI CORPORATION

 

 

Registered Office :

2-3-1 Marunouchi Chiyodaku Tokyo 100-8086

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2012

 

 

Date of Incorporation :

April 1950

 

 

Com. Reg. No.:

0100-01-008771 (Tokyo-Chiyodaku)

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Import, export, wholesale of energy, metals, machinery, chemicals

 

 

No. of Employees :

63,058 employees

 

 

RATING & COMMENTS

 

MIRA’s Rating :

A

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Status :

Good

Payment Behaviour :

Regular

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 – June 30th, 2012

 

Country Name

Previous Rating

(31.03.2012)

Current Rating

(30.06.2012)

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 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. Japan's industrial sector is heavily dependent on imported raw materials and fuels. A tiny agricultural sector is highly subsidized and protected, with crop yields among the highest in the world. Usually self-sufficient in rice, Japan imports about 60% of its food on a caloric basis. Japan maintains one of the world's largest fishing fleets and accounts for nearly 15% of the global catch. 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. Measured on a purchasing power parity (PPP) basis that adjusts for price differences, Japan in 2011 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 2011. A sharp downturn in business investment and global demand for Japan's exports in late 2008 pushed Japan further 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 in March disrupted manufacturing. Electricity supplies remain tight because Japan has temporarily shut down almost all of its nuclear power plants after the Fukushima Daiichi nuclear reactors were crippled by the earthquake and resulting tsunami. Estimates of the direct costs of the damage - rebuilding homes, factories, and infrastructure - range from $235 billion to $310 billion, and GDP declined almost 0.5% in 2011. Prime Minister Yoshihiko NODA has proposed opening the agricultural and services sectors to greater foreign competition and boosting exports through membership in the US-led Trans-Pacific Partnership trade talks and by pursuing free-trade agreements with the EU and others, but debate continues on restructuring the economy and reining in Japan's huge government debt, which exceeds 200% of GDP. Persistent deflation, reliance on exports to drive growth, and an aging and shrinking population are other major long-term challenges for the economy.

 

Source : CIA

 

Company name

 

MITSUBISHI CORPORATION

 

 

REGD NAME

 

Mitsubishi Shoji KK

 

 

MAIN OFFICE

 

2-3-1 Marunouchi Chiyodaku Tokyo 100-8086 JAPAN

Tel: 03-3210-2121     Fax: 03-3210-8051

 

URL:                 http://www.mitsubishicorp.com/

E-Mail address:            (thru the URL)

 

 

ACTIVITIES  

 

Import, export, wholesale of energy, metals, machinery, chemicals, other

 

 

BRANCHES

 

Domestic 31offices including 19 Annexed Offices;

 

 

OVERSEAS

 

197 offices including 32 Project Offices

 

CHIEF EXEC

 

KEN KOBAYASHI, PRES & CEO

 

Yen Amount:     In million Yen, unless otherwise stated

 

SUMMARY

 

FINANCES        FAIR                 A/SALES          Yen 20,126,321 M

PAYMENTS      REGULAR         CAPITAL           Yen 204,447 M

TREND STEADY           WORTH            Yen 3,828,287 M

STARTED         1950                 EMPLOYES      63,058

 

 

COMMENT    

 

LARGEST GENERAL TRADING HOUSE OF JAPAN. 

 

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR CREDIT ENGAGEMENTS: EUR500,000.

                       

 

                        Notes: Unit: in Million Yen.

Forecast (or estimated) figures for 31/03/2013 fiscal term

 

 

HIGHLIGHTS

 

This is the largest general trading house of Japan and one of the core Mitsubishi group firms.  Handles about 25,000 products from raw materials to finished items.  Strong in energies field, particularly topping in LNG business.  Has many subsidiaries in food-related area.  Moving into satellite communications thru JV.  Energy resources division faring well.  Emphasis being directed to new-functional business areas.  Actively cultivating Asian markets such as importing LNG from China and investing in projects in Singapore.  Listed on London and Paris stock exchanges.  The company invested Yen 420 billion in acquiring partial concessions in a large-scale copper mine in Chile in Nov 2011, boosting its total copper concessions around two-fold to an annual 250,000 tons.  It will invest an additional Yen 400 billion-plus in the expansion of large-scale coking coal concessions in Australia.  The company reached an accord in July 2012 over the general framework for a new labor and management agreement, but the coking coal production will not return to the normal situation before the second half.  It will sell around 4% of the 24.5% stake it acquired for around 5.4 billion dollars in the Chilean copper corporation in the preceding term following the vendor and the public corporation of Chile.  

 

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2012 fiscal term amounted to Yen 20,126,321 million, a 4.6% up from Yen 19,253,443 million in the previous tem.  In Japan, economic activity headed for recovery in the latter half of the fiscal year, after production and exports slumped in the aftermath of the Great East Japan Earthquake.  However, the pace of recovery was moderate at best, held back by the rapid Yen appreciation, impact of flooding in Thailand and other factors.  The recurring profit was posted at Yen 458,970 million and the net profit at Yen 453,849 million, respectively, compared with Yen 530,105 million recurring profit and Yen 464,543 million net profit, respectively, a year ago.

 

(Apr/Sept/2012 results): Sales Yen 9,650,606 million (down 3.8%), operating profit Yen 55,658 million (down 67.6%), recurring profit Yen 151,466 million (down 41.4%), net profit Yen 190,418 million (down 22.8%).  (% compared with the corresponding period a year ago).

 

For the current term ending Mar 2013 the recurring profit is projected at Yen 280,000 million and the net profit at Yen 330,000 million, on a 0.6% fall in turnover, to Yen 20,000,000 million.  Energy business may surpass the expectations, backed by steady oil prices and rising overseas dividend income.  Automobile-related sales in Asia including Thailand will grow.  But metals resources may fall far short of projections due to the prolonged strike at the mainstay coking cool joint venture in Australia.  Net profit will continue to fall.  

 

The financial situation is considered FAIR and good for ORDINARY business engagements.

 

REGISTRATION

 

Date Registered: Apr 1950

Regd No.:       0100-01-008771 (Tokyo-Chiyodaku)

Legal Status:    Limited Company (Kabushiki Kaisha)

Authorized:      2,500 million shares

Issued:             1,653,505,751 shares

Sum:                 Yen 204,447 million

 

Major shareholders (%): Japan Trustee Services Bank T (7.1), Tokio Marine & Nichido Fire Ins (4.5), Master Trust Bank of Japan T (4.1), Meiji Yasuda Life Ins (3.9), MTBJ (Mitsubishi Heavy Ind) (2.9), SSBT OT05 Omnibus Acct Treaty CI (2.2), MUFG (1.5),  Nomura T (MUTB) (1.3), Mellon Bank Mellon Omnibus US P (1.0), MTBJ (Mitsubishi Electric) (1.0); foreign owners (30.0)

 

No. of shareholders: 289,972

 

Listed on the S/Exchange (s) of: Tokyo, Osaka, Nagoya, London

 

Managements: Yorihiko Kojima, ch; Ken Kobayashi, pres; Ryoichi Ueda, v pres; Masahide Yano, s/mgn dir; Hideyuki Nabeshima, s/mgn dir; Hideto Nakahara, s/mgn dir; Kiyoshi Fujimura, mgn dir; Yasuo Nagai, mgn dir; Yu Nomaguchi, dir; Kunio Itoh, dir; Kazuo Tsukuda, dir

           

Nothing detrimental is known as to the commercial morality of executives.

 

Related companies: Ryoshoku Ltd, Mitsubishi Corp USA, Mitsubishi Corporation Financial Management Services, Mitsubishi Development, etc. 

 

 

OPERATION

 

Activities: Imports, exports and wholesales wide varieties of commodities from raw materials to consumer goods:

 

(Sales breakdown by divisions):

 

Energy Div (23%): crude oil, petroleum products, LNG, LPG, carbon, other;

 

Metals Div (22%): ferrous & nonferrous raw materials, MDP units, steel products, other;

 

Machinery Div (16%): power & electrical systems, plant projects, aerospace, industrial machinery, motor vehicles, other;

 

Chemical Div (11%): raw materials for synthetic resins & fibers, chemical fertilizers, inorganic raw materials, industrial salts, plastics, electronics materials, life science products, other;

 

Life Style Div (27%): foods, textiles, housing general merchandise, other;

 

Overseas sales ratio (19%)

 

Clients: [Power companies, mfrs, wholesalers] Nippon Oil Corp, Ryoshoku Ltd, Tokyo Gas, Tokyo Electric Power, Kansai Electric Power, Kyushu Electric Power, Osaka Gas Co,  other.

            No. of accounts: 3,000

            Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, oil refiners, wholesalers] Mitsubishi Heavy Ind, Mitsubishi Motors, Saudi Arabian Oil Co, Brunei LNG SB, Malaysia LNG, JGC Corp, other.

 

Payment record: Regular

 

Location: Business area in Tokyo.  Office premises at the caption address are owned and maintained satisfactorily.

 

Bank References:

MUFG (H/O)

Mizuho Corporate Bank (H/O)

Relations: Satisfactory

 

 

FINANCES

(In Million Yen)

 

FINANCES: (Consolidated in million yen)

 

　

　

Terms Ending:

31/03/2012

31/03/2011

INCOME STATEMENT

 

 

 

  Annual Sales

　

20,126,321

19,233,443

 

  Cost of Sales

18,998,461

18,083,541

 

      GROSS PROFIT

1,127,860

1,149,902

 

  Selling & Adm Costs

856,738

833,761

 

      OPERATING PROFIT

271,122

316,141

 

  Non-Operating P/L

177,748

218,156

 

      RECURRING PROFIT

458,970

534,297

　

      NET PROFIT

453,849

463,188

BALANCE SHEET

 

 

 

 

  Cash

　

1,252,951

1,208,752

 

  Receivables

 

2,379,899

3,133,395

 

  Inventory

 

965,027

970,675

 

  Securities, Marketable

　

　

 

  Other Current Assets

　

　

 

      TOTAL CURRENT ASSETS

6,175,276

5,993,975

 

  Property & Equipment

3,265,380

2,978,616

 

  Intangibles

 

　

　

 

  Investments, Other Fixed Assets

　

　

 

      TOTAL ASSETS

12,588,513

11,272,775

 

  Payables

 

2,108,171

1,879,958

 

  Short-Term Bank Loans

886,431

656,873

 

　

 

　

　

 

  Other Current Liabs

　

　

 

      TOTAL CURRENT LIABS

4,465,966

3,981,297

 

  Debentures

 

　

　

 

  Long-Term Bank Loans

3,760,101

3,188,749

 

  Reserve for Retirement Allw

51,345

48,657

 

  Other Debts

　

　

　

 

      TOTAL LIABILITIES

8,760,226

7,722,830

 

      MINORITY INTERESTS

 

 

 

Common stock

204,447

203,598

 

Additional paid-in capital

262,039

256,501

 

Retained earnings

3,302,093

3,095,348

 

Evaluation p/l on investments/securities

230,362

236,792

 

Others

 

　

　

 

Treasury stock, at cost

(20,565)

(151,650)

 

      TOTAL S/HOLDERS` EQUITY

3,828,287

3,549,945

　

      TOTAL EQUITIES

12,588,513

11,272,775

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

31/03/2012

31/03/2011

 

Cash Flows from Operating Activities

　

550,694

331,204

 

Cash Flows from Investment Activities

-1,100,913

-262,601

 

Cash Flows from Financing Activities

599,059

76,749

　

Cash, Bank Deposits at the Term End

　

1,252,951

1,208,742

ANALYTICAL RATIOS            Terms ending:

31/03/2012

31/03/2011

 

 

Net Worth (S/Holders' Equity)

3,828,287

3,549,945

 

 

Current Ratio (%)

138.27

150.55

 

 

Net Worth Ratio (%)

30.41

31.49

 

 

Recurring Profit Ratio (%)

2.28

2.78

 

 

Net Profit Ratio (%)

2.26

2.41

 

 

Return On Equity (%)

11.86

13.05

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.53.85

UK Pound

1

Rs.85.25

Euro

1

Rs.71.72

 

INFORMATION DETAILS

 

Report Prepared by :

NLM

 

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%)

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.