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Report No. : |
335847 |
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Report Date : |
07.08.2015 |
IDENTIFICATION DETAILS
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Name : |
MITSUBISHI CORPORATION |
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Registered Office : |
2-3-1 Marunouchi Chiyodaku Tokyo 100-8086 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2015 |
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Date of Incorporation : |
April 1950 |
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Com. Reg. No.: |
0100-01-008771 |
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Legal Form : |
Limited Company |
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Line of Business : |
Imports, exports and wholesales wide varieties of commodities from raw materials to consumer goods, energy metals, machines, chemicals, others (--100%) |
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No. of Employees : |
76,322 |
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 |
|
Maximum Credit Limit : |
Yen 194,326.4 Million |
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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, 2015
|
Country Name |
Previous Rating (31.12.2014) |
Current Rating (31.03.2015) |
|
Japan |
A1 |
A1 |
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Risk Category |
ECGC Classification |
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Insignificant |
A1 |
|
Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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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 |
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
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
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.
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.
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).
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
(In Million
Yen)
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FINANCES: (Consolidated in million yen) |
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Terms Ending: |
31/03/2015 |
31/03/2014 |
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INCOME STATEMENT |
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Annual Sales |
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7,669,489 |
7,635,168 |
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Cost of Sales |
6,459,595 |
6,449,163 |
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GROSS PROFIT |
1,209,894 |
1,186,005 |
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Selling & Adm Costs |
998,751 |
952,898 |
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OPERATING PROFIT |
211,143 |
233,107 |
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Non-Operating P/L |
363,579 |
298,847 |
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RECURRING PROFIT |
574,722 |
531,954 |
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NET PROFIT |
406,391 |
386,359 |
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BALANCE SHEET |
||||
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Cash |
|
1,725,189 |
1,332,036 |
|
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Receivables |
3,473,352 |
3,751,865 |
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Inventory |
1,301,547 |
1,287,959 |
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Securities, Marketable |
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||
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Other Current Assets |
1,108,602 |
898,183 |
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TOTAL CURRENT ASSETS |
7,608,690 |
7,270,043 |
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Property & Equipment |
2,395,231 |
2,509,918 |
||
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Intangibles |
329,081 |
213,729 |
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Investments, Other Fixed Assets |
6,441,364 |
5,907,435 |
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TOTAL ASSETS |
16,774,366 |
15,901,125 |
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Payables |
2,511,142 |
2,680,954 |
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Short-Term Bank Loans |
1,513,876 |
1,381,980 |
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Other Current Liabs |
953,967 |
789,657 |
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TOTAL CURRENT LIABS |
4,978,985 |
4,852,591 |
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Debentures |
4,535,117 |
4,693,855 |
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Long-Term Bank Loans |
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|
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Reserve for Retirement Allw |
69,482 |
65,452 |
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Other Debts |
|
1,135,227 |
749,857 |
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TOTAL LIABILITIES |
10,718,811 |
10,361,755 |
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MINORITY INTERESTS |
||||
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Capital, Paid-Up |
204,447 |
204,447 |
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Surplus |
5,851,108 |
5,334,923 |
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SHAREHOLDERS' EQUITY |
6,055,555 |
5,539,370 |
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TOTAL EQUITIES |
16,774,366 |
15,901,125 |
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CONSOLIDATED CASH FLOWS |
||||
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Terms ending: |
31/03/2015 |
31/03/2014 |
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Cash Flows
from Operating Activities |
|
798,764 |
381,576 |
|
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Cash
Flows from Investment Activities |
-154,852 |
-300,502 |
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Cash
Flows from Financing Activities |
-305,334 |
-118,845 |
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Cash,
Bank Deposits at the Term End |
|
1,725,189 |
1,332,036 |
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ANALYTICAL RATIOS Terms ending: |
31/03/2015 |
31/03/2014 |
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Net
Worth (S/Holders' Equity) |
6,055,555 |
5,539,370 |
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Current
Ratio (%) |
152.82 |
149.82 |
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Net
Worth Ratio (%) |
36.10 |
34.84 |
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Recurring
Profit Ratio (%) |
7.49 |
6.97 |
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Net
Profit Ratio (%) |
5.30 |
5.06 |
||
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Return
On Equity (%) |
6.71 |
6.97 |
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FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.63.76 |
|
|
1 |
Rs.99.60 |
|
Euro |
1 |
Rs.69.71 |
INFORMATION DETAILS
|
Analysis Done by
: |
DIV |
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Report Prepared
by : |
TPT |
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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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 |
|
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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 |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively below
average. |
Small |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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-- |
NB |
New Business |
-- |
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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.