MIRA INFORM REPORT

 

 

Report No. :

335847

Report Date :

07.08.2015

 

IDENTIFICATION DETAILS

 

Name :

MITSUBISHI CORPORATION

 

 

Registered Office :

2-3-1 Marunouchi Chiyodaku Tokyo 100-8086

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2015

 

 

Date of Incorporation :

April 1950

 

 

Com. Reg. No.:

0100-01-008771

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Imports, exports and wholesales wide varieties of commodities from raw materials to consumer goods, energy metals, machines, chemicals, others (--100%)

 

 

No. of Employees :

76,322

 

 

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

 

Maximum Credit Limit :

Yen 194,326.4 Million

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 31, 2015

 

Country Name

Previous Rating

(31.12.2014)

Current Rating

(31.03.2015)

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 an 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. Scarce in many natural resources, Japan has long been dependent on imported raw materials. Since the complete shutdown of Japan’s nuclear reactors after the earthquake and tsunami disaster in 2011, Japan's industrial sector has become even more dependent than it was previously on imported fossil 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 impressive - 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 aftereffects 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 four times since 2008. 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 of that year disrupted manufacturing. The economy has largely recovered in the four years since the disaster, although reconstruction in the affected Tohoku region has lagged, in part due to a shortage of labor in the construction sector. Japan enjoyed a sharp uptick in growth in 2013 on the basis of Prime Minister Shinzo Abe’s “Three Arrows” economic revitalization agenda - dubbed “Abenomics” - of monetary easing, “flexible” fiscal policy, and structural reform. Abe’s government has replaced the preceding administration’s plan to phase out nuclear power with a new policy of seeking to restart nuclear power plants that meet strict new safety standards, and emphasizing nuclear energy’s importance as a base-load electricity source. Japan joined the Trans-Pacific Partnership (TPP) 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 2014 stood as the fourth-largest economy in the world after first-place China, which surpassed Japan in 2001, and third-place India, which edged out Japan in 2012. While seeking to stimulate and reform the economy, the government must also devise a strategy for reining in Japan's huge government debt, which amounts to more than 230% of GDP. To help raise government revenue, Japan adopted legislation in 2012 to gradually raise the consumption tax rate to 10% by 2015, beginning with a hike from 5% to 8% implemented in April 2014. That increase had a contractionary effect on GDP, however, so PM Abe in late 2014 decided to postpone the final phase of the increase until April 2017 to give the economy more time to recover. Led by the Bank of Japan’s aggressive monetary easing, Japan is making progress in ending deflation, but demographics - low birthrate and an aging, shrinking population - pose 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 (220) 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 7,669,489 M

PAYMENTS      REGULAR                     CAPITAL           Yen 204,447 M

TREND             STEADY                       WORTH            Yen 6,055,555 M

STARTED         1950                             EMPLOYES      76,322

 

COMMENT:      LARGEST GENERAL TRADING HOUSE OF JAPAN.  FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

MAX CREDIT LIMIT: YEN 194,326.4 MILLION, 30 DAYS NORMAL TERMS

 

 

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 replacement 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/2015 fiscal term amounted to Yen 7,669,489 million, a 0.4% up from Yen 7,635,168 million in the previous tem.  The recurring profit was posted at Yen 574,722 million and the net profit at Yen 406,391 million, respectively, compared with Yen 531,954 million recurring profit and Yen 386,359 million net profit, respectively, a year ago.

 

For the current term ending Mar/2016 the recurring profit is projected at Yen 520,000 million and the net profit at Yen 360,000 million, respectively, on a slight rise in turnover, to Yen 7,700,000 million. 

 

The financial situation is considered FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 194,326.4 million, on 30 days normal terms. 

 

 

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 (31.8)

 

No. of shareholders: 256,731

 

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, energy metals, machines, chemicals, others (--100%):

 

 

Clients: [Power companies, mfrs, wholesalers] JX Nippon Oil, Ryoshoku Ltd, Tokyo Gas, Tokyo Electric Power, Kansai Electric Power, Chubu Electric Power, Kyushu Electric Power, Mitsubishi Foods, 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, JX Nippon Oil, 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:

31/03/2015

31/03/2014

INCOME STATEMENT

  Annual Sales

 

7,669,489

7,635,168

  Cost of Sales

6,459,595

6,449,163

      GROSS PROFIT

1,209,894

1,186,005

  Selling & Adm Costs

998,751

952,898

      OPERATING PROFIT

211,143

233,107

  Non-Operating P/L

363,579

298,847

      RECURRING PROFIT

574,722

531,954

 

      NET PROFIT

406,391

386,359

BALANCE SHEET

  Cash

 

1,725,189

1,332,036

  Receivables

3,473,352

3,751,865

  Inventory

1,301,547

1,287,959

  Securities, Marketable

 

 

  Other Current Assets

1,108,602

898,183

      TOTAL CURRENT ASSETS

7,608,690

7,270,043

  Property & Equipment

2,395,231

2,509,918

  Intangibles

329,081

213,729

  Investments, Other Fixed Assets

6,441,364

5,907,435

      TOTAL ASSETS

16,774,366

15,901,125

  Payables

2,511,142

2,680,954

  Short-Term Bank Loans

1,513,876

1,381,980

 

 

 

  Other Current Liabs

953,967

789,657

      TOTAL CURRENT LIABS

4,978,985

4,852,591

  Debentures

4,535,117

4,693,855

  Long-Term Bank Loans

 

 

  Reserve for Retirement Allw

69,482

65,452

  Other Debts

 

1,135,227

749,857

      TOTAL LIABILITIES

10,718,811

10,361,755

      MINORITY INTERESTS

  Capital, Paid-Up

204,447

204,447

  Surplus

5,851,108

5,334,923

      SHAREHOLDERS' EQUITY

6,055,555

5,539,370

 

      TOTAL EQUITIES

16,774,366

15,901,125

CONSOLIDATED CASH FLOWS

Terms ending:

31/03/2015

31/03/2014

Cash Flows from Operating Activities

 

798,764

381,576

Cash Flows from Investment Activities

-154,852

-300,502

Cash Flows from Financing Activities

-305,334

-118,845

 

Cash, Bank Deposits at the Term End

 

1,725,189

1,332,036

ANALYTICAL RATIOS            Terms ending:

31/03/2015

31/03/2014

Net Worth (S/Holders' Equity)

6,055,555

5,539,370

Current Ratio (%)

152.82

149.82

Net Worth Ratio (%)

36.10

34.84

Recurring Profit Ratio (%)

7.49

6.97

Net Profit Ratio (%)

5.30

5.06

Return On Equity (%)

6.71

6.97

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.63.76

UK Pound

1

Rs.99.60

Euro

1

Rs.69.71

 

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

Report Prepared by :

TPT

 

               

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.