MIRA
INFORM REPORT
|
Report Date : |
18.10.2013 |
IDENTIFICATION DETAILS
|
Name : |
MITSUI & CO LTD |
|
|
|
|
Registered Office : |
Mitsui Bussan Bldg, 1-2-1 Ohtemachi Chiyodaku |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as on) : |
31.03.2013 |
|
|
|
|
Date of Incorporation : |
July 1947 |
|
|
|
|
Com. Reg. No.: |
0100-01-008767 (Tokyo-Chiyodaku) |
|
|
|
|
Legal Form : |
Limited Company |
|
|
|
|
Line of Business : |
Import, export, wholesale of iron & steel, metals, machinery, chemicals, foodstuffs, textiles, crude oil, fuels, electronics |
|
|
|
|
No. of Employees : |
44,805 |
RATING & COMMENTS
|
MIRA’s Rating : |
Aa |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
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 – March 31st, 2013
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
|
|
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
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 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 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. Modest economic growth continued after 2000, but the
economy has fallen into recession three times since 2008. A sharp downturn in
business investment and global demand for Japan''s exports in late 2008 pushed
Japan 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 and the ensuing tsunami in March disrupted
manufacturing. The economy has largely recovered in the two years since the
disaster, but reconstruction in the Tohoku region has been uneven.
Newly-elected Prime Minister Shinzo ABE has declared the economy his
government''s top priority; he has pledged to reconsider his predecessor''s
plan to permanently close nuclear power plants and is pursuing an economic
revitalization agenda of fiscal stimulus and regulatory reform and has said he
will press the Bank of Japan to loosen monetary policy. Measured on a
purchasing power parity (PPP) basis that adjusts for price differences, Japan
in 2012 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. The new government will continue a longstanding debate 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 and address
MITSUI & CO LTD
REGD NAME: Mitsui
Bussan KK
MAIN OFFICE: Mitsui Bussan
Bldg, 1-2-1 Ohtemachi Chiyodaku Tokyo 100-0004
Tel:
03-3285-1111 Fax: 03-3285-9800
E-Mail address: (through the URL
to each division)
ACTIVITIES
Import, export, wholesale of: iron & steel, metals, machinery, chemicals, foodstuffs, textiles, crude oil, fuels, electronics
BRANCHES
150 offices in 67
countries: Domestic (12); Overseas (138)
CHIEF EXEC
MASAMI IIJIMA,
PRES & CEO
Yen Amount: In million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 10,049,637 M
PAYMENTS REGULAR CAPITAL Yen 341,482 M
TREND STEADY WORTH Yen 2,440,104 M
STARTED 1947 EMPLOYES 44,805
COMMENT
JAPAN’S LEADING GENERAL TRADING HOUSE, NUCLEUS OF THE MITSUI GROUP.
FINANCIAL SITUATION CONSIDERED FAIR AND GOOD
FOR ORDINARY BUSINESS ENGAGEMENTS.
Unit: In million Yen
Forecast (or estimated) figures for 31/03/2014
fiscal term
HIGHLIGHTS
The subject company is an offshoot of Japan’s wealthiest merchant house of Edo era founded in 1600. Now ranked one of the largest general trading houses of Japan vying with Mitsubishi Corp for top position. Ranked 2nd in foodstuffs trade next to Mitsubishi Corp but 1st in chemicals. Nucleus firm of the Mitsui group. Handling items vary from metals & minerals, machinery, electronics & information, to chemicals, petrochemicals, plastics, foods. Traditionally strong in field of heavy industries. Active in overseas business expansion such as oil/gas development in Russia and construction of large thermal power plant in Thailand. Strengthening partnership strategy with US Douglas, Unisys and other big firms. Stressing on natural resources, including LNG, and telecommunications sectors. The company paid Yen 88.6 billion out-of-court settlement reached with BP, regarding the oil spill incident in the Gulf of Mexico recorded for the year ended Mar 31/2011. BP is to pay in full any further compensation that may emerge but there is little risk of losses. The company plans to establish a specialty steel mfg company in collaboration with the Mahindra Group, India’s leading financial group, and will continue to seek collaborative business. It intends to establish a JV with a Canadian bio firm and plans production of chemicals derived from biomass. The company will continue mineral exploration in Mozambique in view of the massive volume of deposits, and will make a decision in 2013 over the advisability of development.
FINANCIAL INFORMATION
The sales volume for Mar/2013 fiscal term amounted to Yen 10,049,637 million, a 4.1% down from Yen 10,481,186 million in the previous term. Energy business performed better than expected, backed by solid oil prices and dividend income from an LNG affiliate. But the softening mainline iron ore market hurt. Economic downturn in China affected the chemicals business. Net profit took a downturn, despite decrease in the Yen 50 billion securities valuation loss of the preceding term. The recurring profit was posted at Yen 314,098 million and the net profit at Yen 307,926 million, respectively, compared with Yen 413,211 million recurring profit and Yen 434,497 million net profit, respectively, a year ago.
For the current term ending Mar 2014 the recurring profit is projected at Yen 360,000 million and the net profit at Yen 370,000 million, respectively, on a 4.5% rise in turnover, to Yen 10,500,000 million. New copper concession in Chile will increase. Iron ore market will rebound after hitting the bottom in the second half of the preceding term. Grains business will be free of further impact from droughts. Net profit will rise.
The financial situation is considered FAIR and good for ORDINARY
business engagements.
REGISTRATION
Date Registered:
Jul 1947
Regd No.:
0100-01-008767 (Tokyo-Chiyodaku)
Legal Status: Limited Company (Kabushiki Kaisha)
Authorized: 2,500 million shares
Issued: 1,829,153,527 shares
Sum:
Yen 341,482 million
Major shareholders
(%): Master Trust Bank of Japan, T (8.8), Japan Trustee Services Bank T
(6.8), SSBT OD05 Omnibus Acct Treaty Cl. (2.2), SMBC (2.1), Japan Trustee
Services T9 (1.9), Nippon Life Ins (1.9), Mitsui Sumitomo Ins (1.3), Sumitomo
Mitsui Trust Bank (1.2), Deutsche Securities (1.2), Barclays Securities Japan
(1.1); foreign owners (28.8)
No.
of shareholders: 222,566
Listed
on the S/Exchange (s) of: Tokyo
Managements: Shoei Utsuda,
ch; Masami Iijima, pres; Seiichi Tanaka, v pres; Fuminobu Kawashima, v pres;
Daisuke Saiga, s/mgn dir; Joji Okada, s/mgn dir; Masayuki Kinoshita, s/mgn dir;
Shintaro Ambe, s/mgn dir; Takashi Yamauchi, s/mgn dir; Koichi Tanaka, mgn dir;
Atsushi Oi, mgn dir; Mitsuhiko Kawai, mgn dir
Nothing detrimental is known as to the
commercial morality of executives.
Related companies: Mitsui & Co
(USA), Mitsui Foods, Telepark Corp, other
OPERATION
Activities: A general trading
house for import, export and wholesale of:
(Sales
breakdown by divisions):
Metals
(11%): iron ore, steel materials, ferroalloys, coal, coke, nonferrous metals,
precious metals, electric wires, other;
Machinery
& Information (4%): industrial machinery,
automobiles, electronics & information equipment, office machines, other;
Chemicals (15%): organic & inorganic
chemicals, petrochemicals, fine chemicals, fertilizers, other;
Energy (33%): crude oil, LNG, LPG, fuels,
other petroleum products, other,
Lifestyle
(14%): clothing, upholstery, fabrics, textile raw materials, other;
Steel
Products (6%); steel slabs, billets, hot-rolled sheets, coated sheets, tin plates,
electrical sheets, pipes, wire rods, automotive steel, stainless steel, other;
Others
(17%): lumber, flooring, other construction materials, sporting goods,
cereals, alcoholic beverages, other foodstuffs).
Overseas
sales ratio (45%)
Clients: [Steel mills,
mfrs, wholesalers] Mitsui Foods, Mitsui & Co Hong Kong, Mitsui Oil
Hong Kong, Taiyo Kenki Rental Co, Kato
Sangyo Co, Toray Ind, Tokyo Electric Power, Mitsui Engineering &
Shipbuilding Ind, Mitsui Oil & Gas, other.
No. of accounts:
2,000 – 3,000
Domestic areas of
activities: Nationwide
Suppliers: [Mfrs,
wholesalers] Mitsui Chemical, Mitsui Oil, Toshiba Corp, Toyota Motor,
Fuji Heavy Ind, Abu Dhabi Gas Liquefaction,
Mitsui & Co USA, Toyo Suisan Kaisha, other.
Payment record: Regular
Location: Business area in
Tokyo. Office premises at the caption
address are owned and maintained satisfactorily.
Bank References:
SMBC (H/O)
Mizuho Corporate
Bank (H/O)
Relations:
Satisfactory
FINANCES
(In Million Yen)
|
FINANCES: (Consolidated
in million yen) |
|
|||||
|
|
|
Terms Ending: |
31/03/2013 |
31/03/2012 |
||
|
INCOME STATEMENT |
|
|
||||
|
|
Annual Sales |
|
5,000 |
10,481,166 |
||
|
|
Cost of Sales |
3,000 |
9,602,887 |
|||
|
|
GROSS PROFIT |
2,000 |
878,279 |
|||
|
|
Selling & Adm Costs |
1,000 |
529,895 |
|||
|
|
OPERATING PROFIT |
1,000 |
348,384 |
|||
|
|
Non-Operating P/L |
-169,110 |
64,837 |
|||
|
|
RECURRING PROFIT |
-67,443 |
413,221 |
|||
|
|
NET PROFIT |
-40,794 |
434,497 |
|||
|
BALANCE SHEET |
|
|
|
|||
|
|
Cash |
|
1,425,174 |
1,431,112 |
||
|
|
Receivables |
|
1,608,915 |
1,616,191 |
||
|
|
Inventory |
|
746,584 |
515,758 |
||
|
|
Securities, Marketable |
367 |
1,087 |
|||
|
|
Other Current Assets |
850,491 |
862,175 |
|||
|
|
TOTAL CURRENT ASSETS |
4,631,531 |
4,426,323 |
|||
|
|
Property & Equipment |
1,570,270 |
1,255,883 |
|||
|
|
Intangibles |
|
118,448 |
110,307 |
||
|
|
Investments, Other Fixed Assets |
4,004,332 |
3,219,310 |
|||
|
|
TOTAL ASSETS |
10,324,581 |
9,011,823 |
|||
|
|
Payables |
|
1,438,287 |
1,342,343 |
||
|
|
Short-Term Bank Loans |
421,211 |
372,657 |
|||
|
|
|
|
|
|
||
|
|
Other Current Liabs |
1,185,832 |
909,030 |
|||
|
|
TOTAL CURRENT LIABS |
3,045,330 |
2,624,030 |
|||
|
|
Debentures |
|
|
|
||
|
|
Long-Term Bank Loans |
3,184,957 |
2,898,217 |
|||
|
|
Reserve for Retirement Allw |
68,312 |
55,799 |
|||
|
|
Other Debts |
|
585,878 |
572,967 |
||
|
|
TOTAL LIABILITIES |
6,884,477 |
6,151,013 |
|||
|
|
MINORITY INTERESTS |
|
|
|||
|
|
Common
stock |
341,482 |
341,482 |
|||
|
|
Additional
paid-in capital |
429,828 |
430,491 |
|||
|
|
Retained
earnings |
2,405,008 |
2,192,494 |
|||
|
|
Evaluation
p/l on investments/securities |
135,832 |
90,476 |
|||
|
|
Others |
|
133,928 |
(187,930) |
||
|
|
Treasury
stock, at cost |
(5,974) |
(6,203) |
|||
|
|
TOTAL S/HOLDERS` EQUITY |
3,440,104 |
2,860,810 |
|||
|
|
TOTAL EQUITIES |
10,324,581 |
9,011,823 |
|||
|
CONSOLIDATED CASH FLOWS |
|
|
||||
|
|
|
Terms ending: |
31/03/2013 |
31/03/2012 |
||
|
|
Cash
Flows from Operating Activities |
|
461,430 |
380,984 |
||
|
|
Cash
Flows from Investment Activities |
-753,297 |
-438,191 |
|||
|
|
Cash
Flows from Financing Activities |
221,635 |
57,394 |
|||
|
|
Cash,
Bank Deposits at the Term End |
|
1,425,174 |
1,431,112 |
||
|
ANALYTICAL RATIOS Terms ending: |
31/03/2013 |
31/03/2012 |
||||
|
|
|
Net
Worth (S/Holders' Equity) |
3,440,104 |
2,860,810 |
||
|
|
|
Current
Ratio (%) |
152.09 |
168.68 |
||
|
|
|
Net
Worth Ratio (%) |
33.32 |
31.75 |
||
|
|
|
Recurring
Profit Ratio (%) |
-1348.86 |
3.94 |
||
|
|
|
Net
Profit Ratio (%) |
-815.88 |
4.15 |
||
|
|
|
Return
On Equity (%) |
-1.19 |
15.19 |
||
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.58 |
|
UK Pound |
1 |
Rs.98.51 |
|
Euro |
1 |
Rs.83.49 |
INFORMATION DETAILS
|
Report Prepared
by : |
SDA |
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.