MIRA INFORM REPORT

 

 

Report No. :

304609

Report Date :

24.01.2015

 

IDENTIFICATION DETAILS

 

Name :

MITSUBISHI CHEMICAL HOLDINGS CORPORATION

 

 

Registered Office :

Palace Bldg, 1-1-1 Marunouchi Chiyodaku Tokyo 100-0005

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2014

 

 

Date of Incorporation :

October 2005

 

 

Com. Reg. No.:

0104-01-059206

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Mfr of Chemicals

 

 

No. of Employee :

56,031

 

 

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 – September 30, 2014

 

Country Name

Previous Rating

(30.06.2014)

Current Rating

(30.09.2014)

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:

 

MITSUBISHI CHEMICAL HOLDINGS CORPORATION

 

 

REGD NAME:

 

Mitsubishi Chemical Holdings KK

 

 

MAIN OFFICE:    

 

Palace Bldg, 1-1-1 Marunouchi Chiyodaku Tokyo 100-0005 JAPAN

Tel: 03-6748-7200          -

 

URL:                 http://www.mitsubishi-hd.co.jp

E-Mail address: (thru the URL)

 

 

ACTIVITIES: 

 

Chemical mfr (Holding Company)

 

 

BRANCHES:  

 

Nil

 

 

FACTORIES: 

 

(subsidiaries)

 

 

CHIEF EXEC:

 

YOSHIMITSU KOBAYASHI, PRES

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY:   

 

FINANCES        FAIR                                                     A/SALES          Yen 3,088,577 M

PAYMENTS      NO COMPLAINTS                      CAPITAL           Yen 50,000 M

TREND             UP                                            WORTH            Yen 1,203,316 M

STARTED         2005                                                     EMPLOYES      56,031

 

COMMENT:   

 

CHEMICAL MFR (HOLDING COMPANY) 

FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

 

                        Unit: In Million Yen

Forecast figures for the 31/03/2015 fiscal term.

 

HIGHLIGHTS:

 

This is the major comprehensive chemical mfr.  Holding company founded by Mitsubishi Chemical Corp and Mitsubishi Pharma Corp in Oct 2005.  Core operating companies include Mitsubishi Chemical, Mitsubishi Tanabe Pharma, Mitsubishi Plastics and Mitsubishi Rayon, having 414 subsidiaries and affiliated companies under the Holding Company.  .

 

 

FINANCIAL INFORMATION:

 

The sales volume for Mar/2014 fiscal term amounted to Yen 3,498,834 million, a 13.3% up from Yen 3,088,577 million in the previous term.  The recurring profit was posted at Yen 103,092 million and the net profit at Yen 32,248 million, respectively, compared with Yen 87,054 million recurring profit and Yen 18,596 million net profit, respectively, a year ago.

 

(Apr/Sept/2014 results): Sales Yen 1,672,265 million (up 3.8%), operating profit Yen 73,714 million (up 43.4%), recurring profit Yen 76,336 million (up 52.1%), net profit Yen 33,252 million (up 21.7%).  (% as compared with the corresponding period a year ago).

 

For the current term ending Mar 2015 the recurring profit is projected at Yen 127,000 million and the net profit at Yen 38000 million, respectively, on a 0.9% rise in turnover, to Yen 3,530,000 million.  Functional chemicals and pharmaceuticals will lead growth steadily.

 

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

 

 

REGISTRATION:

           

Date Registered:　          Oct 2005

Regd No:                                  0104-01-059206 (Tokyo-Chiyodaku)

Legal Status:                Limited Company (Kabushiki Kaisha

Authorized:                              6,000 million shares

Issued:                         1,506,288,107 shares

Sum:                            Yen 50,000 million

 

Major shareholders (%): Master Trust Bank of Japan T (4.7), Meiji Yasuda Life Ins (4.2), Japan Trustee Services T (4.1), Nippon Life Ins (3.0), MUFG (2.7), Takeda Pharmaceutical (2.5), Company’s Treasury Stock (2.0), Tokio Marine & Nichido Fire Ins (1.9), Taiyo Life Ins (1.6), Japan Trustee Services T4 (1.5); foreign owners (24.9)

 

No. of shareholders: 149,839

 

Listed on the S/Exchange (s) of: Tokyo

 

Managements: Yoshimitsu Kobayashi, pres; Noboru Tsuda, v pres; Glen Frederickson, mgn dir; Hiroaki Ishizuka, dir; Masayuki Mitsuya, dir; Takumi Ubagai, dir; Hitoshi Ochi, dir; Takeo Kikkawa, dir

 

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

 

Related companies: Mitsubishi Chemical, Mitsubishi Tanabe Pharma, other.

 

 

OPERATION:

           

Activities: Manufactures comprehensive chemicals: electronics applications (4%), designed materials (22%), healthcare products (15%), chemicals (27%), polymers (26%), others (6%)

Overseas Sales Ratio (40%)

           

Clients: [Mfrs, wholesalers] Mitsubishi Chemical, Mitsubishi Tanabe Pharma, Mitsubishi   Resin, Mitsubishi Rayon, KAITEKI Institute, other

No. of accounts: 500

Domestic areas of activities: Nationwide

 

Payment record: No Complaints

 

Location: Business area in Tokyo.  Office premises at the caption address are leased 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:

31/03/2014

31/03/2013

INCOME STATEMENT

　

　

  Annual Sales

　

3,498,834

3,088,577

　

  Cost of Sales

2,791,433

2,440,160

　

      GROSS PROFIT

707,401

648,417

　

  Selling & Adm Costs

596,941

558,176

　

      OPERATING PROFIT

110,460

90,241

　

  Non-Operating P/L

-7,368

-3,187

　

      RECURRING PROFIT

103,092

87,054

　

      NET PROFIT

32,248

18,596

BALANCE SHEET

　

　

  Cash

　

137,664

116,980

　

  Receivables

615,737

588,208

　

  Inventory

591,107

546,965

　

  Securities, Marketable

112,570

84,993

　

  Other Current Assets

106,331

119,512

　

      TOTAL CURRENT ASSETS

1,563,409

1,456,658

　

  Property & Equipment

1,118,050

1,061,551

　

  Intangibles

296,522

245,205

　

  Investments, Other Fixed Assets

501,378

544,344

　

      TOTAL ASSETS

3,479,359

3,307,758

　

  Payables

413,405

416,980

　

  Short-Term Bank Loans

357,838

315,551

　

　

　

　

　

  Other Current Liabs

488,122

521,245

　

      TOTAL CURRENT LIABS

1,259,365

1,253,776

　

  Debentures

225,050

200,000

　

  Long-Term Bank Loans

467,679

153,222

　

  Reserve for Retirement Allw

121,706

126,713

　

  Other Debts

　

90,689

370,731

　

      TOTAL LIABILITIES

2,164,489

2,104,442

　

      MINORITY INTERESTS

　

　

Common stock

50,000

50,000

　

Additional paid-in capital

317,737

317,693

　

Retained earnings

493,611

479,083

　

Evaluation p/l on investments/securities

20,748

13,959

　

Others

444,530

353,861

　

Treasury stock, at cost

(11,756)

(11,280)

　

      TOTAL S/HOLDERS` EQUITY

1,314,870

1,203,316

　

      TOTAL EQUITIES

3,479,359

3,307,758

CONSOLIDATED CASH FLOWS

　

　

Terms ending:

31/03/2014

31/03/2013

　

Cash Flows from Operating Activities

　

177,027

206,504

　

Cash Flows from Investment Activities

-159,789

-169,758

　

Cash Flows from Financing Activities

-8,307

-26,250

　

Cash, Bank Deposits at the Term End

　

179,556

153,120

ANALYTICAL RATIOS            Terms ending:

31/03/2014

31/03/2013

　

Net Worth (S/Holders' Equity)

1,314,870

1,203,316

　

Current Ratio (%)

124.14

116.18

　

Net Worth Ratio (%)

37.79

36.38

　

Recurring Profit Ratio (%)

2.95

2.82

　

Net Profit Ratio (%)

0.92

0.60

　

　

Return On Equity (%)

2.45

1.55

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.61.49

UK Pound

1

Rs.92.16

Euro

1

Rs.69.61

 

INFORMATION DETAILS

 

Analysis Done by :

KRN

 

 

Report Prepared by :

DPT

 

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.