MIRA INFORM REPORT

 

 

Report No. :

354574

Report Date :

12.12.2015

 

IDENTIFICATION DETAILS

 

Name :

MITSUBISHI CORPORATION

 

 

Registered Office :

2-3-1 Marunouchi Chiyodaku Tokyo 100-8086 Japan

 

 

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.

 

 

No. of Employees :

71,994

 

 

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 :

Satisfactory

 

 

Payment Behaviour :

No Complaints

 

 

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 summery

 

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 (139) nationwide

OVERSEAS:     Branches & subsidiaries (191)

                       

CHIEF EXEC:   KEN KOBAYASHI, PRES & CEO

 

Yen Amount:     In million Yen, unless otherwise stated

 

SUMMARY:      FINANCES        FAIR                             A/SALES          Yen 7,669,484 M

                        PAYMENTS      NO COMPLAINTS          CAPITAL           Yen 204,447 M

                        TREND             STEADY                       WORTH            Yen 6,055,555 M

                        STARTED         1950                             EMPLOYES      71,994

 

 

COMMENT    

 

LARGEST GENERAL TRADING HOUSE OF JAPAN. 

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR

ORDINARY BUSINESS ENGAGEMENTS.

                       

 

Unit: In Million Yen

Forecast (or estimated) figures for 31/03/2016 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.  A leader also in machinery including automobiles and chemical products.  Expanding investment in newly emerging countries under the guidance of President Ken Kobayashi, appointed in 2011.  

 

 

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 400,574 million, respectively, compared with Yen 531,954 million recurring profit and Yen 361,359 million net profit, respectively, a year ago.

 

(Apr/Sept/2015 results): Sales Yen 3,605,278 million (down 5.2%), operating profit Yen 188,395 million (down 45.4%), recurring profit Yen 174,130 million (down 35.9%), net profit Yen 154,923 million (down 39.3%).  (% as compared with the corresponding period 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 0.91% down in turnover, to Yen 7,600,000 million.  

 

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 (5.8), 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; Shuma Uchino, v pres; Kazuyuki Mori, v pres; Yasuhito Hirota, v pres 

           

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, 398 subsidiaries & 216 affiliates). 

           

 

OPERATION

 

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

 

(Sales breakdown by divisions):

Energy Div (24%): crude oil, petroleum products, LNG, LPG, carbon, other;

Metals Div (11%): ferrous & nonferrous raw materials, MDP units, steel products, other;

Machinery Div (11%): power & electrical systems, plant projects, aerospace, industrial machinery, motor vehicles, other;

Chemical Div (25%): raw materials for synthetic resins & fibers, chemical fertilizers, inorganic raw materials, industrial salts, plastics, electronics materials, life science products, other;

Life Style Div (25%): foods, textiles, housing general merchandise, other;

Others (4%)

Overseas sales ratio (30%)

 

Clients: [Power companies, mfrs, wholesalers] JX Nippon Oil & Energy 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: No Complaints

 

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

400,574

361,359

BALANCE SHEET

　

　

  Cash

　

1,725,189

1,332,036

　

  Receivables

3,473,852

3,751,865

　

  Inventory

1,301,547

1,287,959

　

  Securities, Marketable

　

　

　

  Other Current Assets

1,108,102

898,183

　

      TOTAL CURRENT ASSETS

7,608,690

7,270,043

　

  Property & Equipment

2,395,261

2,509,918

　

  Intangibles

329,081

213,729

　

  Investments, Other Fixed Assets

6,441,334

5,907,435

　

      TOTAL ASSETS

16,774,366

15,901,125

　

  Payable & loans

1,513,876

1,381,980

　

　

　

　

　

　

　

　

　

  Other Current Liabs

3,465,109

3,470,611

　

      TOTAL CURRENT LIABS

4,978,985

4,852,591

　

  Debentures & Bank Loans

1,835,117

4,693,855

　

　

　

　

　

  Reserve for Retirement Allw

69,482

65,452

　

  Other Debts

　

3,835,227

749,857

　

      TOTAL LIABILITIES

10,718,811

10,361,755

　

      MINORITY INTERESTS

　

　

Common stock

204,447

204,447

　

Additional paid-in capital

266,688

265,356

　

Retained earnings

3,591,447

3,352,692

　

Evaluation p/l on investments/securities

1,515,691

1,259,252

　

Others

485,078

471,704

　

Treasury stock, at cost

(7,796)

(14,081)

　

      TOTAL S/HOLDERS` 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

　

798,264

381,676

　

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.66.35

UK Pound

1

Rs.100.28

Euro

1

Rs.71.30

YEN

1

Rs.0.56

 

 

INFORMATION DETAILS

 

Analysis Done by :

RAS

 

 

Report Prepared by :

ANK

 

               


 

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.