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Report Date : |
10.06.2014 |
IDENTIFICATION DETAILS
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Name : |
MITSUI & CO LTD |
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Registered Office : |
Mitsui Bussan
Bldg, 1-2-1 Ohtemachi Chiyodaku Tokyo 100-0004 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2014 (Consolidated) |
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Date of Incorporation : |
25.07.1947 |
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Com. Reg. No.: |
0100-01-008767 |
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Legal Form : |
Limited Company
(Kabushiki Kaisha) |
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Line of Business : |
Subject is a general
trading house for importer, exporter and wholesaler of Metals Iron Ore, Steel Materials, Ferroalloys, Coal, Coke, Nonferrous Metals, Precious Metals & Electric Wires Machinery
& Information Industrial Machinery, Automobiles, Electronics & Information Equipment & Office Machines Chemicals Organic & Inorganic Chemicals,
Petrochemicals, Fine Chemicals & Fertilizers Energy Crude Oil, LNG, LPG, Fuels & Other
Petroleum Products Lifestyle Clothing, Upholstery, Fabrics &
Textile Raw Materials Steel
Products Steel Slabs, Billets, Hot-Rolled Sheets,
Coated Sheets, Tin Plates, Electrical Sheets, Pipes, Wire Rods, Automotive
Steel & Stainless Steel |
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|
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No. of Employees |
45,148 |
RATING & COMMENTS
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MIRA’s Rating : |
A |
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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 |
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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 – March 31, 2014
|
Country Name |
Previous Rating (31.12.2013) |
Current Rating (31.03.2014) |
|
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 |
MITSUI & CO LTD
Mitsui Bussan KK
Mitsui Bussan
Bldg, 1-2-1 Ohtemachi Chiyodaku Tokyo 100-0004, JAPAN
Tel:
03-3285-1111 Fax: 03-3285-9800
E-Mail address: (through
the URL to each division)
Subject is a general
trading house for Importer, Exporter and Wholesaler of
Metals
Iron Ore, Steel Materials, Ferroalloys, Coal, Coke, Nonferrous Metals, Precious Metals & Electric Wires
Machinery
& Information
Industrial Machinery, Automobiles, Electronics & Information Equipment & Office Machines
Chemicals
Organic & Inorganic Chemicals,
Petrochemicals, Fine Chemicals & Fertilizers
Energy
Crude Oil, LNG, LPG, Fuels & Other
Petroleum Products
Lifestyle
Clothing, Upholstery, Fabrics & Textile
Raw Materials
Steel
Products
Steel Slabs, Billets, Hot-Rolled Sheets, Coated Sheets, Tin Plates, Electrical Sheets, Pipes, Wire Rods, Automotive Steel & Stainless Steel
Domestic (12);
Overseas (133: 34 offices & 99 subsidiaries))
MASAMI IIJIMA,
PRES & CEO
Yen Amount: In million Yen, unless otherwise stated
FINANCES FAIR A/SALES Yen 11,165,660 M
PAYMENTS REGULAR CAPITAL Yen
341,482 M
TREND STEADY WORTH Yen
3,868,066 M
STARTED 1947 EMPLOYES 45,148
JAPAN’S LEADING GENERAL TRADING HOUSE, NUCLEUS OF THE MITSUI GROUP.
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 |
9,942,472 |
272,697 |
306,659 |
(%) |
2,553,334 |
|
(Consolidated) |
31/03/2012 |
10,481,166 |
413,211 |
434,497 |
5.42 |
2,860,810 |
|
31/03/2013 |
10,049,637 |
314,098 |
307,926 |
-4.12 |
3,440,104 |
|
|
31/03/2014 |
11,165,660 |
453,732 |
422,161 |
11.11 |
3,868,066 |
|
|
31/03/2015 |
11,450,000 |
470,000 |
435,000 |
2.55 |
.. |
Unit: In million Yen
Forecast (or estimated) figures for 31/03/2015
fiscal term
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 will invest around Yen 66 billion in the general cargo transportation business of Brazil-based Vale, with the aim of expanding the infrastructure business. The copper mine in Chile will book Yen 14 billion in asset impairment due to swelling development costs. The company plans to adopt IFRS from the March 2015 term.
The sales volume for Mar/2014 fiscal term amounted to Yen 11,165,660 million, an 11.1% up from Yen 10,049,637 million in the previous term. Main profit-earner iron ore production volume expanded, and price cuts were limited. The energy business was benefitted from steady growth of gas projects, including Sakhalin. The weaker Yen pushed up earnings at overseas subsidiaries, and net profit rebounded. The recurring profit was posted at Yen 453,732 million and the net profit at Yen 422,161 million, respectively, compared with Yen 314,098 million recurring profit and Yen 307,926 million net profit, respectively, a year ago.
For the current term ending Mar 2015 the recurring profit is reportedly projected at Yen 470,000 million and the net profit at Yen 435,000 million, respectively, on a 2.6% rise in turnover, to Yen 11,450,000. Increased production of iron ore and energy will drive sales growth.
The financial situation is considered FAIR and good for ORDINARY business engagements.
Date Registered: 25 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 (7.9), Japan Trustee Services Bank T
(6.0), SMBC (2.1), Japan Trustee Services T9 (2.0), Nippon Life Ins (1.9), Bank
of New York Treaty Jasdec (1.4), Barclays Securities Japan (1.3), Mitsui
Sumitomo ins (1.3), Bank of New York Jasdec Treaty (1.1), JP Morgan Chase Bank
380055 (1.1):; foreign owners (32.6)
No. of shareholders: 215,654
Listed on the S/Exchange (s) of: Tokyo
Managements: Shoei Utsuda, ch;
Masami Iijima, pres; Daisuke Sanga, v pres; Joji Okada, v pres; Motomu
Takahashi, v pres; Hiroyuki Kato, v pres; Yoshihiro Hombo, v pres; Hironobu
Ishikawa, s/mgn dir; Atsushi Kume, s/mgn dir; Takeshi Kanamori, s/mgn dir;
Satoshi Tanaka, s/mgn dir; Makoto Suzuki, s/mgn dir
Nothing
detrimental is known as to the commercial morality of executives.
Related
companies: Mitsui & Co (USA), Mitsui Foods, Telepark Corp, other
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 (7%): industrial machinery,
automobiles, electronics & information equipment, office machines, other;
Chemicals (15%): organic & inorganic
chemicals, petrochemicals, fine chemicals, fertilizers, other;
Energy (29%): crude oil, LNG, LPG, fuels,
other petroleum products, other,
Lifestyle
(16%): 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
(12%): 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 Bank (H/O)
Relations:
Satisfactory
(In Million
Yen)
|
FINANCES: (Consolidated
in million yen) |
||||
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Terms Ending: |
31/03/2014 |
31/03/2013 |
|
INCOME STATEMENT |
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Annual Sales |
|
11,165,660 |
10,049,637 |
|
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Cost of Sales |
10,305,728 |
9,259,198 |
||
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GROSS PROFIT |
859,932 |
790,439 |
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Selling & Adm Costs |
584,716 |
535,836 |
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OPERATING PROFIT |
275,216 |
254,603 |
||
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Non-Operating P/L |
178,516 |
59,495 |
||
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RECURRING PROFIT |
453,732 |
314,098 |
||
|
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NET PROFIT |
422,161 |
307,926 |
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BALANCE SHEET |
||||
|
Cash |
|
1,225,079 |
1,425,174 |
|
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Receivables |
1,664,240 |
1,608,915 |
||
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Inventory |
702,555 |
746,584 |
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Securities, Marketable |
|
|
||
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Other Current Assets |
838,405 |
850,858 |
||
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TOTAL CURRENT ASSETS |
4,430,279 |
4,631,531 |
||
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Property & Equipment |
1,834,134 |
1,570,270 |
||
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Intangibles |
141,346 |
118,448 |
||
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Investments, Other Fixed Assets |
4,595,505 |
4,004,332 |
||
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TOTAL ASSETS |
11,001,264 |
10,324,581 |
||
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Payables |
1,362,839 |
1,438,287 |
||
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Short-Term Bank Loans |
519,220 |
663,129 |
||
|
|
|
|
||
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Other Current Liabs |
1,090,102 |
943,914 |
||
|
TOTAL CURRENT LIABS |
2,972,161 |
3,045,330 |
||
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Debentures |
|
|
||
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Long-Term Bank Loans |
3,432,501 |
3,184,957 |
||
|
Reserve for Retirement Allw |
69,492 |
68,312 |
||
|
Other Debts |
|
659,044 |
585,878 |
|
|
TOTAL LIABILITIES |
7,133,198 |
6,884,477 |
||
|
MINORITY INTERESTS |
||||
|
Common
stock |
341,482 |
341,482 |
||
|
Additional
paid-in capital |
418,796 |
429,828 |
||
|
Retained
earnings |
2,737,792 |
2,405,008 |
||
|
Evaluation
p/l on investments/securities |
164,896 |
135,832 |
||
|
Others |
259,240 |
133,928 |
||
|
Treasury
stock, at cost |
(54,140) |
(5,974) |
||
|
TOTAL S/HOLDERS` EQUITY |
3,868,066 |
3,440,104 |
||
|
|
TOTAL EQUITIES |
11,001,264 |
10,324,581 |
|
|
CONSOLIDATED CASH FLOWS |
||||
|
Terms ending: |
31/03/2014 |
31/03/2013 |
||
|
Cash
Flows from Operating Activities |
|
521,524 |
461,430 |
|
|
Cash
Flows from Investment Activities |
-704,516 |
-753,297 |
||
|
Cash
Flows from Financing Activities |
-34,698 |
221,635 |
||
|
|
Cash,
Bank Deposits at the Term End |
|
1,225,079 |
1,425,174 |
|
ANALYTICAL RATIOS Terms ending: |
31/03/2014 |
31/03/2013 |
||
|
Net
Worth (S/Holders' Equity) |
3,868,066 |
3,440,104 |
||
|
Current
Ratio (%) |
149.06 |
152.09 |
||
|
Net
Worth Ratio (%) |
35.16 |
33.32 |
||
|
Recurring
Profit Ratio (%) |
4.06 |
3.13 |
||
|
Net
Profit Ratio (%) |
3.78 |
3.06 |
||
|
Return
On Equity (%) |
10.91 |
8.95 |
||
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.59.06 |
|
|
1 |
Rs.99.35 |
|
Euro |
1 |
Rs.80.62 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
|
|
|
|
Report Prepared
by : |
MNL |
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.