MIRA INFORM REPORT

 

 

Report Date :

20.08.2014

 

IDENTIFICATION DETAILS

 

Name :

MITSUBISHI CORPORATION

 

 

Registered Office :

2-3-1 Marunouchi Chiyodaku Tokyo 100-8086

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2014 (Consolidated)

 

 

Date of Incorporation :

April 1950

 

 

Com. Reg. No.:

0100-01-008771 (Tokyo-Chiyodaku)

 

 

Legal Form :

Limited Company

 

 

Line of Business :

·         Subject is a general trading house of Japan and one of the core Mitsubishi group firms

Importer, exporter and wholesaler of wide varieties of commodities from raw materials to consumer goods:

Subject operates through following divisions :-

 

Energy Division

(Crude Oil, Petroleum Products, Lng, Lpg, Carbon)

 

Metals Division  

(Ferrous & Nonferrous Raw Materials, Mdp Units, Steel Products)

 

Machinery Division 

(Power & Electrical Systems, Plant Projects, Aerospace, Industrial Machinery, Motor Vehicles)

 

 

Chemical Division

(Materials For Synthetic Resins & Fibers, Chemical Fertilizers, Inorganic Raw Materials, Industrial Salts, Plastics, Electronics Materials, Life Science Products)

 

Life Style Division

(Foods, Textiles, Housing General Merchandise)

 

 

No of Employees :

65,975

 

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 01, 2014

 

Country Name

Previous Rating

(31.03.2014)

Current Rating

(01.06.2014)

Japan

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low Risk

 

A2

Moderate Low Risk

 

B1

Moderate Risk

 

B2

Moderate High Risk

 

C1

High Risk

 

C2

Very High Risk

 

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 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. Prime Minister Shinzo ABE has declared the economy his government's top priority; he has overturned his predecessor's plan to permanently close nuclear power plants and is pursuing an economic revitalization agenda of fiscal stimulus, monetary easing, and structural reform. Japan joined the Trans Pacific Partnership 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 2013 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 is exceeding 230% of GDP. To help raise government revenue and reduce public debt, Japan decided in 2013 to gradually increase the consumption tax to a total of 10% by the year 2015. Japan is making progress on ending deflation due to a weaker yen and higher energy costs, but reliance on exports to drive growth and an aging, shrinking population pose 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:                             Error! Hyperlink reference not valid.

E-Mail address:            (thru the URL)

 

 

ACTIVITIES

 

·         Subject is a general trading house of Japan and one of the core Mitsubishi group firms

Importer, exporter and wholesaler of wide varieties of commodities from raw materials to consumer goods:

 

Subject operates through following divisions :-

 

Energy Division

(Crude Oil, Petroleum Products, Lng, Lpg, Carbon)

 

Metals Division  

(Ferrous & Nonferrous Raw Materials, Mdp Units, Steel Products)

 

Machinery Division 

(Power & Electrical Systems, Plant Projects, Aerospace, Industrial Machinery, Motor Vehicles)

 

Chemical Division

(Materials For Synthetic Resins & Fibers, Chemical Fertilizers, Inorganic Raw Materials, Industrial Salts, Plastics, Electronics Materials, Life Science Products)

 

Life Style Division

(Foods, Textiles, Housing General Merchandise)

 


BRANCHES

 

Domestic (141) nationwide

 

 

OVERSEAS

 

Branches & subsidiaries (195)

                       

 

CHIEF EXEC

 

KEN KOBAYASHI, PRES & CEO

 

Yen Amount:     In million Yen, unless otherwise stated

 

SUMMARY

 

FINANCES        FAIR                 A/SALES          Yen 21,950,137 M

PAYMENTS      REGULAR         CAPITAL           Yen 204,447 M

TREND STEADY           WORTH            Yen 5,204,026 M

STARTED         1950                 EMPLOYES      65,975

 

 

COMMENT    

 

LARGEST GENERAL TRADING HOUSE OF JAPAN. 

 

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

19,233,443

534,297

463,188

(%)

3,600,990

(Consolidated)

31/03/2012

20,126,321

458,970

453,849

4.64

3,826,777

 

31/03/2013

20,207,183

337,206

360,028

0.40

4,556,050

 

31/03/2014

21,950,137

432,233

444,793

8.63

5,204,026

 

31/03/2015

22,500,000

405,000

420,000

2.51

..

                        Notes: Unit: in Million Yen.

Forecast (or estimated) figures for 31/03/2015 fiscal term

 

 


HIGHLIGHTS

 

This is the largest general trading house of Japan and one of the core Mitsubishi group firms.  Strong in field of energies including LNG.  Has many excellent subsidiaries in food-related area.  Boasts strong resources development capability.  Moving into satellite communications thru JV.  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.  Listed on London Stock Exchange.  The company sold Yen 140 billion in assets from April to June 2013, around the same as the preceding term, and will accelerate replacment of low-return assets.  It acquired a thermal energy plant in the US at a cost of Yen 200 billion, jointly with banks and pension funds.  The company will step up activities in the chartered vessel business, and aims to increase ownership of bulk carriers two-fold by 2020.  It plans voluntary application of IFRS from the Mar 2015 term.

 

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2014 fiscal term amounted to Yen 21,950,137 million, an 8.6% up from Yen 20,207,183 million in the previous tem.  The increase was mainly due to higher transaction volumes and foreign currency factors (weaker Yen).  The Japanese economy remained on a moderate recovery path.  Price levels held firm and internal demand was also robust, supported partly by last-minute demand ahead of the increase in the consumption tax rate (from 5% to 8%).  The recurring profit was posted at Yen 432,233 million and the net profit at Yen 444,793 million, respectively, compared with Yen 337,206 million recurring profit and Yen 360,028 million net profit, respectively, a year ago.

 

For the current term ending Mar/2015 the recurring profit is projected at Yen 405,000 million and the net profit at Yen 420,000 million, respectively, on a 2.5% rise in turnover, to Yen 22,500,000 million.  Sales of petroleum and natural gas will benefit from expanded production.  The automobile and aircraft business in Asia will soar.

 

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:                        1,653,667,326 shares

Sum:                            Yen 204,447 million

 

Major shareholders (%): Japan Trustee Services Bank T (5.9), Tokio Marine & Nichido Fire Ins (4.5), Master Trust Bank of Japan T (4.2), Meiji Yasuda Life Ins (3.9), MTBJ (Mitsubishi Heavy Ind) (2.9), Japan Trustee Services T9 (1.7), MUFG (1.5), Bank of New York Treaty Jasdec (1.3), Nomura T (MUTB) (1.3), JP Morgan Securities Japan (1.0); foreign owners (27.9)

 

No. of shareholders: 295,018

 

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

 

Managements: Yorihiko Kojima, ch; Ken Kobayashi, pres; Hideto Nakahara, v pres; Jun Yanai, v pres; Jun Kinukawa, v pres; Takahisa Miyauchi, v pres; Seiji Shiraki, v pres; Toru Moriyama, s/mgn dir; Ichiro Ando, s/mgn dir; Eiichi Tanabe, s/mgn 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 (414 subsidiaries & 215 affiliates). 

           

 

OPERATION

 

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

 

(Sales breakdown by divisions):

 

Energy Div (25%): crude oil, petroleum products, LNG, LPG, carbon, other;

 

Metals Div (20%): ferrous & nonferrous raw materials, MDP units, steel products, other;

 

Machinery Div (12%): power & electrical systems, plant projects, aerospace, industrial machinery, motor vehicles, other;

 

Chemical Div (12%): 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;

 

Others (4%)

 

Overseas sales ratio (20%)

 

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

 

            No. of accounts: 3,000

            Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, oil refiners, wholesalers] Mitsubishi Heavy Ind, Saudi Arabian Oil Co, Brunei LNG SB, Malaysia LNG, JGC Corp, BG LNG Trading, LLC, Mitsubishi Motors, 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 Bank (H/O)

Relations: Satisfactory

 

FINANCES

(In Million Yen)

 

FINANCES: (Consolidated in million yen)

 

 

 

Terms Ending:

31/03/2014

31/03/2013

INCOME STATEMENT

 

 

 

  Annual Sales

 

21,950,137

20,207,183

 

  Cost of Sales

20,789,996

19,177,526

 

      GROSS PROFIT

1,160,141

1,029,657

 

  Selling & Adm Costs

961,674

895,782

 

      OPERATING PROFIT

198,467

133,875

 

  Non-Operating P/L

233,766

203,331

 

      RECURRING PROFIT

432,233

337,206

 

      NET PROFIT

444,793

360,028

BALANCE SHEET

 

 

 

 

  Cash

 

1,322,964

1,345,755

 

  Receivables

 

2,627,752

1,505,518

 

  Inventory

 

1,269,679

1,202,295

 

  Securities, Marketable

 

 

 

  Other Current Assets

1,902,810

2,772,692

 

      TOTAL CURRENT ASSETS

7,123,205

6,826,260

 

  Property & Equipment

2,715,941

2,487,464

 

  Intangibles

 

 

 

 

  Investments, Other Fixed Assets

5,452,553

5,096,941

 

      TOTAL ASSETS

15,291,699

14,410,665

 

  Payables

 

2,222,955

2,230,074

 

  Short-Term Bank Loans

824,467

799,983

 

 

 

 

 

 

  Other Current Liabs

1,654,495

1,698,056

 

      TOTAL CURRENT LIABS

4,701,917

4,728,113

 

  Debentures

 

 

 

 

  Long-Term Bank Loans

4,692,531

4,498,683

 

  Reserve for Retirement Allw

57,198

57,702

 

  Other Debts

 

636,027

570,117

 

      TOTAL LIABILITIES

10,087,673

9,854,615

 

      MINORITY INTERESTS

 

 

 

Common stock

204,447

204,447

 

Additional paid-in capital

265,972

262,705

 

Retained earnings

3,952,233

3,607,989

 

Evaluation p/l on investments/securities

244,156

305,447

 

Others

 

551,299

193,432

 

Treasury stock, at cost

(14,081)

(17,970)

 

      TOTAL S/HOLDERS` EQUITY

5,204,026

4,556,050

 

      TOTAL EQUITIES

15,291,699

14,410,665

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

31/03/2014

31/03/2013

 

Cash Flows from Operating Activities

 

258,142

403,313

 

Cash Flows from Investment Activities

-182,689

-752,477

 

Cash Flows from Financing Activities

-122,131

401,687

 

Cash, Bank Deposits at the Term End

 

1,322,964

1,345,755

ANALYTICAL RATIOS            Terms ending:

31/03/2014

31/03/2013

 

 

Net Worth (S/Holders' Equity)

5,204,026

4,556,050

 

 

Current Ratio (%)

151.50

144.38

 

 

Net Worth Ratio (%)

34.03

31.62

 

 

Recurring Profit Ratio (%)

1.97

1.67

 

 

Net Profit Ratio (%)

2.03

1.78

 

 

Return On Equity (%)

8.55

7.90

 

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.60.73

UK Pound

1

Rs.101.48

Euro

1

Rs.81.04

 

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

Report Prepared by :

SMN

 

 

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.