MIRA INFORM REPORT

 

 

Report Date :

02.10.2014

 

IDENTIFICATION DETAILS

 

Name :

MITSUBISHI CHEMICAL CORPORATION

 

 

Registered Office :

Palace Bldg, 1-1-1 Marunouchi Chiyodaku Tokyo 100-8251

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2014

 

 

Date of Incorporation :

June 1950

 

 

Com. Reg. No.:

0100-01-146743

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Manufacture of petrochemicals, functional chemicals, health-care products, other

 

 

No. of Employees :

5,571

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

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 1, 2014

 

Country Name

Previous Rating

(31.03.2014)

Current Rating

(01.06.2014)

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 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 and address

 

MITSUBISHI CHEMICAL CORPORATION

REGD NAME:    Mitsubishi Kagaku KK

MAIN OFFICE:  Palace Bldg, 1-1-1 Marunouchi Chiyodaku Tokyo 100-8251 JAPAN

Tel: 03-6748-7300     Fax: 03-3286-1210

 

                        *.. Moved to the caption address from the one as given

                       

URL:                 http://www.m-kagaku.co.jp/

E-Mail address: (thru the URL)

 

 

ACTIVITIES  

 

Mfg of petrochemicals, functional chemicals, health-care products, other

 

 

BRANCHES        

 

Osaka, Nagoya, Fukuoka Sapporo, Sendai

 

 

OVERSEAS   

 

USA, Germany, Hong Kong, China, Singapore, Thailand (--subsidiaries)

 

 

FACTORIES  

 

Kurosaki, Yokkaichi, Naoetsu, Mizushima, Sakaide, Kashima, Tsukuba, Matsuyama, Odawara

R&D Centers:   Yokohama, Tsukuba

 

 

OFFICER(S)  

 

HIROAKI ISHIZUKA, PRES         Yoshimitsu Kobayashi, ch

Masanori Karatsu, mgn dir          Noriyoshi Ohira, mgn dir

Yoshihiro Umeha, mgn dir           Shushichi Yoshimura, dir

                     

Yen Amount:     In million Yen, unless otherwise stated

 


SUMMARY    

 

FINANCES        FAIR                 A/SALES          Yen 2,159,667 M

PAYMENTSREGULAR   CAPITAL           Yen 50,000 M

TREND UP                    WORTH            Yen 356,853 M

STARTED         1950                 EMPLOYES      5,571

 

 

COMMENT    

 

MFR SPECIALIZING IN CHEMICALS, WHOLLY OWNED BY MITSUBISHI                                    

CHEMICAL HOLDINGS CORP. 

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

 

HIGHLIGHTS

 

This is the nation’s largest comprehensive chemical mfr.  Tops in ethylene production.  Reborn through the merger between Mitsubishi Kasei and Mitsubishi Petrochemical.  In Oct 2005, founded a joint-stock holding company, Mitsubishi Chemical Holdings Corp (See REGISTRATION), jointly with Mitsubishi Pharma Corp by means of a stock-to-stock exchange, and became its wholly owned subsidiary, simultaneously de-listed from Tokyo & Osaka S/E’s.  By the stead, Mitsubishi Chemical Holdings Corp was listed on the two S/E’s.  This is the core of the Group, with petrochemicals accounting for about 85% of total group sales.  The subject is the top ethylene mfr, producing petrochemicals, functional chemicals, healthcare products, other.

 

 

FINANCIAL INFORMATION

 

            The sales volume for Mar/2014 fiscal term amounted to Yen 2,159,667 million, a 10% up from Yen 1,961,833 million in the previous term.  Petroleum oil prices went up, as converted from the weaker Yen.  The recurring profit was posted at Yen 14,851 million and the net profit at Yen 2,199 million, respectively, compared with Yen 9,633 million recurring profit and Yen 10,654 million net losses, respectively, a year ago. 

 

For the current term ending Mar 2015 the recurring profit is projected at Yen 15,000 million and the net profit at Yen 2,500 million, respectively, on a 5% rise in turnover, to Yen 2,270,000 million.  .

 

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

 

 

 

REGISTRATION

           

Date Registered:            Jun 1950

Regd No.:                       0100-01-146743 (Tokyo-Chiyodaku)

Legal Status:     Limited Company (Kabushiki Kaisha)

Authorized:        5,900 million shares

Issued:               2,177,675,032 shares

Sum:                  50,000 million

Major shareholders (%): Mitsubishi Chemical Holdings Corp*(100)

 

*.. Joint-stock holding company, formed in Oct 2005, listed Tokyo S/E, with role of portfolio management of the group, capital Yen 50,000 million, turnover Yen 3,498,834 million, operating profit Yen 110,460 million, recurring profit Yen 103,092 million, net profit Yen 32,248 million, total assets Yen 3,479,359 million, net worth Yen 900,803 million, employees 56,031, pres Yoshimitsu Kobayashi.

           

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

 

 

OPERATION

 

Activities: Manufactures petrochemicals (35%), polymers (25%), functional chemicals (10%), functional materials (10%), healthcare products (5%), services, others (15%).

Overseas Sales Ratio (31%)

 

(Products by divisions):

Petrochemicals Div: purified terephthalic acid, C4 chemicals, PET resins, glacial acrylic acid & derivatives, engineering plastics, functional polymers;

Functional Chemicals Div: information & electronics products (printing supplies, display materials, optical recording media), functional chemicals (fine chemicals, ion-exchange resins, activated carbon, electronic chemicals, food ingredients);

Functional Materials Div: functional materials (carbon materials & products, inorganic materials); high performance materials (films & sheets, construction & civil engineering materials, agricultural materials);

Healthcare Products Div: active pharmaceutical ingredients, diagnostic reagents & instruments, clinical testing, support for drug discovery;

Other Div: carbon, etc.

 

Clients: [Mfrs, wholesalers] Mitsubishi Corp, Nisshin Steel, Meiwa Corp, other.

No. of accounts: 3,000

Domestic areas of activities: Nationwide

Suppliers: [Mfrs, wholesalers] Mitsubishi Corp, Nippon Oil Corp, Nisshin Steel, other.

 

Payment record: Regular

 

Location: Business area in Tokyo.  Office premises at the caption address are owned by the parent, Mitsubishi Chemical Holdings Corp, and maintained satisfactorily.

 

Bank References:

MUFG (H/O)

Mizuho Bank (H/O)

Relations: Satisfactory

 

 

FINANCIALS

 

(Consolidated In Million Yen)

       Terms Ending:

31/03/2015

31/03/2014

31/03/2013

31/03/2012

Annual Sales

 

2,270,000

2,159,667

1,961,833

2,080,902

Recur. Profit

 

15,000

14,851

3,633

30,219

Net Profit

 

2,500

2,199

-10,654

2,914

Total Assets

 

 

1,691,304

1,631,287

1,653,815

Current Assets

 

 

833,752

791,500

774,859

Current Liabs

 

 

901,518

846,137

761,892

Net Worth

 

 

356,853

329,679

322,120

Capital, Paid-Up

 

 

50,000

50,000

50,000

Div.P.Share(¥)

 

 

1.22

1.22

0.41

<Analytical Data>

 

(%)

(%)

(%)

(%)

    S.Growth Rate

 

5.11

10.08

-5.72

3.04

    Current Ratio

 

..

92.48

93.54

101.70

    N.Worth Ratio

 

..

21.10

20.21

19.48

    R.Profit/Sales

 

0.66

0.69

0.19

1.45

    N.Profit/Sales

 

0.11

0.10

-0.54

0.14

    Return On Equity

 

..

0.62

-3.23

0.90

 

Forecast figures for the 31/03/2015 fiscal term

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.61.75

UK Pound

1

Rs.100.06

Euro

1

Rs.77.95

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

Report Prepared by :

PDT

 

               

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.