MIRA INFORM REPORT

Report No. :	348801
Report Date :	06.11.2015

IDENTIFICATION DETAILS

Name :	MITSUBISHI CORPORATION
Registered Office :	1, Temasek Avenue, 19-00, Millenia Tower, 039192
Country :	Singapore
Financials (as on) :	31.03.2015
Date of Incorporation :	17.11.1955
Com. Reg. No.:	S55FC1163-C
Legal Form :	Foreign
Line of Business :	Building construction, infrastructure & trading of chemical, machinery.
No. of Employee :	120 [2015]

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 :	Slow but correct
Litigation :	Exist

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)
Singapore	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

SINGAPORE ECONOMIC OVERVIEW

Singapore has a highly developed and successful free-market economy. It enjoys a remarkably open and corruption-free environment, stable prices, and a per capita GDP higher than that of most developed countries. Unemployment is very low. The economy depends heavily on exports, particularly of consumer electronics, information technology products, medical and optical devices, pharmaceuticals, and on its vibrant transportation, business, and financial services sectors. The economy contracted 0.6% in 2009 as a result of the global financial crisis, but has continued to grow since 2010 on the strength of renewed exports. Growth in 2014 was slower at 2.9%, largely a result of soft demand for exports amid a sluggish global economy and weak growth in Singapore’s manufacturing sector. The government is attempting to restructure Singapore’s economy by weaning its dependence on foreign labor, addressing weak productivity, and increasing Singaporean wages. Singapore has attracted major investments in pharmaceuticals and medical technology production and will continue efforts to strengthen its position as Southeast Asia's leading financial and high-tech hub. Singapore is a member of the 12-nation Trans-Pacific Partnership free trade negotiations, the Regional Comprehensive Economic Partnership negotiations with the nine other ASEAN members plus Australia, China, India, Japan, South Korea and New Zealand, and in 2015, Singapore will form, with the other ASEAN members, the ASEAN Economic Community.

Source : CIA

EXECUTIVE SUMMARY

REGISTRATION NO.

:

S55FC1163-C

COMPANY NAME

:

MITSUBISHI CORPORATION

FORMER NAME

:

N/A

INCORPORATION DATE

:

17/11/1955

COMPANY STATUS

:

EXIST

LEGAL FORM

:

FOREIGN

LISTED STATUS

:

NO

REGISTERED ADDRESS

:

1, TEMASEK AVENUE, 19-00, MILLENIA TOWER, 039192, SINGAPORE.

BUSINESS ADDRESS

:

1, TEMASEK AVENUE, 19-00, MILLENIA TOWER, 039192, SINGAPORE.

TEL.NO.

:

65-63381100

FAX.NO.

:

65-63388361

CONTACT PERSON

:

KENJI TAKAHASHI ( GENERAL MANAGER )

PRINCIPAL ACTIVITY

:

BUILDING CONSTRUCTION, INFRASTRUCTURE & TRADING OF CHEMICAL, MACHINERY

AUTHORISED CAPITAL

:

JPY 125,000,000,000.00

SALES

:

USD 648,158,433 [2015]

NET WORTH

:

USD 57,382,606 [2015]

STAFF STRENGTH

:

120 [2015]

BANKER (S)

:

MIZUHO CORPORATE BANK, LTD THE BANK OF TOKYO-MITSUBISHI UFJ, LTD (SINGAPORE BRANCH)

LITIGATION

:

TRACED

FINANCIAL CONDITION

:

FAIR

PAYMENT

:

AVERAGE

MANAGEMENT CAPABILITY

:

AVERAGE

COMMERCIAL RISK

:

MODERATE

CURRENCY EXPOSURE

:

MODERATE

GENERAL REPUTATION

:

SATISFACTORY

INDUSTRY OUTLOOK

:

AVERAGE GROWTH

HISTORY / BACKGROUND

The Subject is principally engaged in the (as a / as an) building construction, infrastructure & trading of chemical, machinery.

The immediate holding company of the Subject is MITSUBISHI CORPORATION, a company incorporated in JAPAN.

Share Capital History

Date	Authorised Shared Capital	Issue & Paid Up Capital
15/10/2015	JPY 125,000,000,000.00	JPY 0.00

No shareholders was found in our databank at the time of investigation

DIRECTORS

DIRECTOR 1

Name Of Subject	:	AKIHIKO NISHIYAMA
Address	:	1085-3, NOGAWA, MIYAMAE-KU, KAWASAKI-SHI, KANAGAWA, JAPAN.
IC / PP No	:	TH9500536
Nationality	:	JAPANESE
Date of Appointment	:	19/06/2015

DIRECTOR 2

Name Of Subject	:	KAZUYUKI MORI
Address	:	12-23, SAGINUMA 1-CHOME, MIYAMAE-KU, KAWASAKI-SHI, KANAGAWA, JAPAN.
IC / PP No	:	TH8624521
Nationality	:	JAPANESE
Date of Appointment	:	20/06/2014

DIRECTOR 3

Name Of Subject	:	KEN KOBAYASHI
Address	:	24-30, KAMARIYAMINAMI 4-CHOME, KANAZAWA-KU, YOKOHAMA-SHI, KANAGAWA-KEN, JAPAN.
IC / PP No	:	TZ0216956
Nationality	:	JAPANESE
Date of Appointment	:	24/06/2010

DIRECTOR 4

Name Of Subject	:	TAKAHISA MIYAUCHI
Address	:	3-8-2, KITASENZOKU, OTA-KU, TOKYO, JAPAN.
IC / PP No	:	TK9181890
Nationality	:	JAPANESE
Date of Appointment	:	21/06/2013

DIRECTOR 5

Name Of Subject	:	HIDEHIRO KONNO
Address	:	28-3, KAMISOSHIGAYA 7-CHOME, SETAGAYA-KU, TOKYO, JAPAN.
IC / PP No	:	TF9769245
Nationality	:	JAPANESE
Date of Appointment	:	24/06/2010

DIRECTOR 6

Name Of Subject	:	SHUMA UCHINO
Address	:	2-16-6, IKEHANA YOTSUKAIDO-SHI, CHIBA, JAPAN.
IC / PP No	:	TH9224185
Nationality	:	JAPANESE
Date of Appointment	:	21/06/2013

DIRECTOR 7

Name Of Subject	:	RYOZO KATO
Address	:	1-15-507, TAKANAWA 2-CHOME, MINATO-KU, TOKYO, JAPAN.
IC / PP No	:	TH6470706
Nationality	:	JAPANESE
Date of Appointment	:	24/06/2009

DIRECTOR 8

Name Of Subject	:	SAKIE TACHIBANA FUKUSHIMA
Address	:	11-40-2302, AKASAKA 1-CHOME, MINATOKU, TOKYO, JAPAN.
IC / PP No	:	TK0233839
Nationality	:	JAPANESE
Date of Appointment	:	21/06/2013

DIRECTOR 9

Name Of Subject	:	JUN YANAI
Address	:	4-6, GOBANCHO, CHIYODA-KU, TOKYO, 102-0076, JAPAN.
IC / PP No	:	TH6363546
Nationality	:	JAPANESE
Date of Appointment	:	21/06/2013

DIRECTOR 10

Name Of Subject	:	YASUHITO HIROTA
Address	:	6-52-14, SHIMOUMA, SETAGAYA-KU, TOKYO, JAPAN.
IC / PP No	:	TH7412139
Nationality	:	JAPANESE
Date of Appointment	:	20/06/2014

DIRECTOR 11

Name Of Subject	:	HIDETO NAKAHARA
Address	:	6-504, SANBANCHO 9-CHOME, CHIYODA-KU, TOKYO, JAPAN.
IC / PP No	:	TZ0253998
Nationality	:	JAPANESE
Date of Appointment	:	24/06/2009

DIRECTOR 12

Name Of Subject	:	JUN KINUKAWA
Address	:	1-20-6, NAKAMACHI, SETAGAYA-KU, TOKYO, JAPAN.
IC / PP No	:	TK4296095
Nationality	:	JAPANESE
Date of Appointment	:	21/06/2013

DIRECTOR 13

Name Of Subject	:	KAZUO TSUKUDA
Address	:	26-2-1402, SHIMOMARUKO 4-CHOME, OTA-KU, TOKYO, JAPAN.
IC / PP No	:	TH1551180
Nationality	:	JAPANESE
Date of Appointment	:	25/06/2008

DIRECTOR 14

Name Of Subject	:	YORIHIKO KOJIMA
Address	:	5-53, MIYAZAKI 6-CHOME, MIYAMAE-KU, KAWASAKI-SHI, KANAGAWA, JAPAN.
IC / PP No	:	TE3145927
Nationality	:	JAPANESE
Date of Appointment	:	29/06/1995

MANAGEMENT

1)	Name of Subject	:	KENJI TAKAHASHI
	Position	:	GENERAL MANAGER

AUDITOR

Auditor	:	DELOITTE & TOUCHE LLP
Auditor' Address	:	N/A

COMPANY SECRETARIES

1)	Company Secretary	:	KENJI TAKAHASHI
	IC / PP No	:	G5138397X
	Address	:	6, NAROOMA ROAD, DUNEARN ESTATE, 298300, SINGAPORE.
	Remarks	:	AGENT

2)	Company Secretary	:	KUNIO FUKUMOTO
	IC / PP No	:	G5365956Q
	Address	:	1, TEMASEK AVENUE, 19-00, MILLENIA TOWER, 039192, SINGAPORE.
	Remarks	:	AGENT

BANKING

Banking relations are maintained principally with :

1)

Name

:

MIZUHO CORPORATE BANK, LTD

2)

Name

:

THE BANK OF TOKYO-MITSUBISHI UFJ, LTD (SINGAPORE BRANCH)

ENCUMBRANCE (S)

Charge No	Creation Date	Charge Description	Chargee Name	Total Charge	Status
C201113090	17/10/2011	ALL MONIES	SHINSEI BANK, LIMITED	-	Unsatisfied

LITIGATION CHECK AGAINST SUBJECT

* A check has been conducted in our databank against the Subject whether the subject has been involved in any litigation.

LEGAL ACTION
Code No	:	99	Case No	:	106
Year	:	2008	Place	:	SINGAPORE
Court	:	SESSIONS COURT
Date Filed	:	15/02/2008
Solicitor	:	KRISHANASAMY RAVINTHERAN
Solicitor Ref	:	KR.0197.06
Solicitor Firm	:	K RAVI ASSOCIATES
Plaintiff	:	SHAZAHAN JAMAL UDDIN
Defendants	:	MITSUBISHI CORPORATION (S55FC1163) 1, TEMASEK AVENUE, 19-00, MILLENIA TOWER, 039192, SINGAPORE.
Hearing Date	:	N/A
Amount Claimed	:	350000
Nature of Claim	:	SGD
Remark	:	TORT-NEGLIGENCE

No winding up petition was found in our databank

PAYMENT RECORD

SOURCES OF RAW MATERIALS:
Local	:	N/A
Overseas	:	N/A

The Subject refused to disclose its suppliers.

The Subject refused to provide any name of trade/service supplier and we are unable to conduct any trade enquiry. However, from financial historical data we conclude that :

OVERALL PAYMENT HABIT
Prompt 0-30 Days	[	]	Good 31-60 Days	[	]	Average 61-90 Days	[	X	]
Fair 91-120 Days	[	]	Poor >120 Days	[	]

CLIENTELE

Local	:	YES
Domestic Markets	:	SINGAPORE
Overseas	:	YES
Export Market	:	ASIA
Credit Term	:	AS AGREED
Payment Mode	:	TELEGRAPHIC TRANSFER (TT)

OPERATIONS

Goods Traded

:

CHEMICAL, MACHINERY

Services

:

BUILDING CONSTRUCTION, INFRASTRUCTURE

Total Number of Employees:
YEAR	2015	2014	2013	2012	2011
GROUP	N/A	N/A	N/A	N/A	N/A
COMPANY	120	120	115	115	110

Branch

:

NO

Other Information:

The Subject is principally engaged in the (as a / as an) building construction, infrastructure & trading of chemical, machinery.

The Subject's business fields cover the followings:

* Energy, Machinery/Metal/Global Environment
* Infrastructure, construction Business
* Logistics & Development
* Chemicals and Living Essentials

CURRENT INVESTIGATION

Latest fresh investigations carried out on the Subject indicated that :

Telephone Number Provided By Client	:	6563381100
Current Telephone Number	:	65-63381100
Match	:	YES
Address Provided by Client	:	1, TEMASEK AVENUE, 19-00, MILLENIA TOWER,039192,SINGAPORE
Current Address	:	1, TEMASEK AVENUE, 19-00, MILLENIA TOWER, 039192, SINGAPORE.
Match	:	YES

Other Investigations

On 5th November 2015 we contacted one of the staff from the Subject and she provided some information.

FINANCIAL ANALYSIS

Profitability
Turnover	:	Increased	[	2011 - 2015	]
Profit/(Loss) Before Tax	:	Decreased	[	2011 - 2015	]
Return on Shareholder Funds	:	Acceptable	[	10.59%	]
Return on Net Assets	:	Acceptable	[	11.79%	]
The Subject's turnover increased steadily as the demand for its products / services increased due to the goodwill built up over the years.The management had succeeded in turning the Subject into a profit making company. The profit could be due to better control of its operating costs and efficiency in utilising its resources. The Subject's management had generated acceptable return for its shareholders using its assets.
Working Capital Control
Stock Ratio	:	Favourable	[	1 Days	]
Debtor Ratio	:	Favourable	[	43 Days	]
Creditors Ratio	:	Favourable	[	48 Days	]
The Subject's stocks were moving fast thus reducing its holding cost. This had reduced funds being tied up in stocks. The favourable debtors' days could be due to the good credit control measures implemented by the Subject. The Subject had a favourable creditors' ratio where the Subject could be taking advantage of the cash discounts and also wanting to maintain goodwill with its creditors.
Liquidity
Liquid Ratio	:	Favourable	[	1.25 Times	]
Current Ratio	:	Unfavourable	[	1.27 Times	]
A minimum liquid ratio of 1 should be maintained by the Subject in order to assure its creditors of its ability to meet short term obligations and the Subject was in a good liquidity position. Thus, we believe the Subject is able to meet all its short term obligations as and when they fall due.
Solvency
Interest Cover	:	Favourable	[	10.71 Times	]
Gearing Ratio	:	Unfavourable	[	1.65 Times	]
The interest cover showed that the Subject was able to service the interest. The favourable interest cover could indicate that the Subject was making enough profit to pay for the interest accrued. The Subject was highly geared, thus it had a high financial risk. The Subject was dependent on loans to finance its business needs. In times of economic downturn and / or high interest rate, the Subject will become less profitable and competitive than other firms in the same industry, which are lowly geared. This is because the Subject has to service the interest and to repay the loan, which will erode part of its profits. The profits will fluctuate depending on the Subject's turnover and the interest it needs to pay.
Overall Assessment :
The higher turnover had helped to reduce the Subject's losses. The Subject was in good liquidity position with its total current liabilities well covered by its total current assets. With its current net assets, the Subject should be able to repay its short term obligations. With the favourable interest cover, the Subject could be able to service all the accrued interest without facing any difficulties. The Subject's gearing level was high and its going concern will be in doubt if there is no injection of additional shareholders' funds in times of economic downturn and / or high interest rates.
Overall financial condition of the Subject : FAIR

SINGAPORE ECONOMIC / INDUSTRY OUTLOOK

Major Economic Indicators :	2010	2011	2012	2013	2014
Population (Million)	5.08	5.18	5.31	5.40	5.47
Gross Domestic Products ( % )	14.5	4.9	1.3	3.7	(3.5)
Consumer Price Index	2.8	5.2	4.6	2.4	2.4
Total Imports (Million)	423,221.8	459,655.1	474,554.0	466,762.0	463,779.1
Total Exports (Million)	478,840.7	514,741.2	510,329.0	513,391.0	518,922.7
Unemployment Rate (%)	2.2	2.1	2.0	1.9	1.9
Tourist Arrival (Million)	11.64	13.17	14.49	15.46	15.01
Hotel Occupancy Rate (%)	85.6	86.5	86.4	86.3	85.5
Cellular Phone Subscriber (Million)	1.43	1.50	1.52	1.97	1.98
Registration of New Companies (No.)	29,798	32,317	31,892	37,288	41,589
Registration of New Companies (%)	12.8	8.5	(1.3)	9.8	11.5
Liquidation of Companies (No.)	15,126	19,005	17,218	17,369	18,767
Liquidation of Companies (%)	(32.5)	25.6	9.4	(5.3)	8.0
Registration of New Businesses (No.)	23,978	23,494	24,788	22,893	35,773
Registration of New Businesses (%)	(10.78)	2.02	5.51	1.70	56.30
Liquidation of Businesses (No.)	24,211	23,005	22,489	22,598	22,098
Liquidation of Businesses (%)	2.8	(5)	(2.2)	0.5	(2.2)
Bankruptcy Orders (No.)	1,537	1,527	1,748	1,992	1,757
Bankruptcy Orders (%)	(25.3)	(0.7)	14.5	14.0	(11.8)
Bankruptcy Discharges (No.)	2,252	1,391	1,881	2,584	3,546
Bankruptcy Discharges (%)	(26.3)	(38.2)	35.2	37.4	37.2
INDUSTRIES ( % of Growth ) :
Agriculture
Production of Principal Crops	(0.48)	4.25	3.64	-
Fish Supply & Wholesale	(10.5)	12.10	(0.5)	-	2.80
Manufacturing *	92.8	100.0	100.3	102.0
Food, Beverages & Tobacco	96.4	100.0	103.5	103.5	105.0
Textiles	122.1	100.0	104.0	87.1	74.9
Wearing Apparel	123.3	100.0	92.1	77.8	49.5
Leather Products & Footwear	81.8	100.0	98.6	109.8	95.9
Wood & Wood Products	104.0	100.0	95.5	107.4	112.0
Paper & Paper Products	106.1	100.0	97.4	103.2	103.4
Printing & Media	103.5	100.0	93.0	86.1	80.3
Crude Oil Refineries	95.6	100.0	99.4	93.5	85.6
Chemical & Chemical Products	97.6	100.0	100.5	104.1	114.0
Pharmaceutical Products	75.3	100.0	109.7	107.2	115.7
Rubber & Plastic Products	112.3	100.0	96.5	92.9	92.8
Non-metallic Mineral	92.5	100.0	98.2	97.6	82.2
Basic Metals	102.2	100.0	90.6	76.5	98.3
Fabricated Metal Products	103.6	100.0	104.3	105.1	105.1
Machinery & Equipment	78.5	100.0	112.9	114.5	124.0
Electrical Machinery	124.1	100.0	99.3	108.5	121.3
Electronic Components	113.6	100.0	90.6	94.3	95.0
Transport Equipment	94.0	100.0	106.3	107.5	103.2
Construction	14.20	20.50	28.70	-	22.00
Real Estate	21.3	25.4	31.9	-	145.1
Services
Electricity, Gas & Water	4.00	7.00	6.30	-
Transport, Storage & Communication	12.80	7.40	5.30	-	14.20
Finance & Insurance	(0.4)	8.90	0.50	-	6.00
Government Services	9.70	6.90	6.00	-
Education Services	(0.9)	(1.4)	0.30	-	5.98
* Based on Index of Industrial Production (2011 = 100)

INDUSTRY ANALYSIS

INDUSTRY :	CONSTRUCTION
For the whole of 2013, the sector expanded by 5.9%, slower than the growth of 8.6% in the previous year. Total construction output increased by 5.4% on the back of robust private and public residential building activities. Besides, total construction demand increased by 17% to $36 billion in 2013, setting a new record high. The increase was driven by robust construction demand from the public sector.
Public sector construction demand rose by 56% to $15 billion in 2013. The increase was supported by a ramp-up of public-housing developments and significant increase in civil engineering construction demand on account of the award of various Thomson MRT Line contracts. Besides, despite a slight drop of 1.1%, total private sector construction demand remained relatively strong at $21 billion. Demand was fuelled by residential developments, where contracts awarded increased by 15% to reach $9.8 billion in 2013, the highest on record. Besides, civil engineering construction demand contracted by 45% due to the high base in 2012. However, the value of civil engineering contracts awarded in 2013 was still higher than that achieved between 2009 and 2011, supported largely by the construction of major utilities and berth facilities.
In 2013, construction output has increased by 5.4% to reach $33 billion, surpassing the previous peak of $32 billion in 2012. Growth was underpinned by strong on-site construction activities for public and private residential, private industrial and civil engineering developments. Total construction output in 2014 is projected to rise to between $34 billion and $36 billion, supported by record high levels of contracts awarded in 2013 and continued robust on-site activities from the high levels of demand since 2011.
Public sector construction output reached $12 billion in 2013, comparable to that achieved in 2012, supported largely by an increase in onsite construction activities for public housing (18%) and institutional and other building (4.7%) projects. Some of the major institutional building projects under construction included the Singapore University of Technology and Design (SUTD) Campus Phase 1, Ng Teng Fong Hospital, National Heart Centre, National Art Gallery and Victoria Concert Hall. Additionally, even though civil engineering construction output has contracted by 9.6% in 2013, progress payments remained robust at $4.8 billion, supported by new rail construction such as the Downtown Line Stages 2 & 3 as well as other infrastructure projects like Tuas West Extension and Marina Coastal Expressway.
Private sector construction output expanded by 8.3% to $21 billion in 2013, underpinned by growth across all development types. In particular, robust growth in on-site construction activities for residential developments (13%) and civil engineering (14%) projects supported overall output growth.
BCA forecasts total construction demand in 2014 to be between $31 billion and $38 billion. Demand from the public sector is expected to strengthen to between $19 billion and $22 billion, contributing close to 60% of projected total construction demand. The boost to overall demand is likely to come from stronger institutional and civil engineering construction works. At the same time, private sector demand is projected to soften to between $12 billion and $16 billion, due to the anticipated reduction in residential construction demand as property market sentiments remain subdued following the various property cooling measures.
Furthermore, BMI continues to expect construction and infrastructure growth in Singapore to moderate over the 2014-2020 period. Real growth for the construction sector is forecast to slow from 5.9% in 2014 to3.0% in 2019, while real growth for the infrastructure sector is expected to fall from 12.7% in 2014 to 4.0%in 2019. This moderation is primarily due to declining housing demand, longer construction periods for planned infrastructure projects and a poor export outlook, which could curb investment in non-residential buildings.
In September 2014, Singapore's Land Transit Authority (LTA) announced that Phase 2 of the Mass Rapid Transit (MRT) system's Downtown Line would open ahead of schedule in Q116. The project had previously been delayed by financial troubles at one of its key contractors, and was expected to come online only by Q216. Phase 2 of the Downtown Line will include 12 stations, nine of which will be completely new. The project's total cost is estimated at approximately SGD800mn.
OVERALL INDUSTRY OUTLOOK : AVERAGE GROWTH

CREDIT RISK EVALUATION & RECOMMENDATION

Incorporated in 1955, the Subject is a Foreign company, focusing on building construction, infrastructure & trading of chemical, machinery. The Subject has been in business for over two decades. It has built up a strong clientele base and satisfactory reputation will enable the Subject to further enhance its business in the near term. The Subject is expected to enjoy a stable market shares.

Over the years, the Subject has penetrated into both the local and overseas market. The Subject has positioned itself in the global market and is competing in the industry. Its stable clientele base will enable the Subject to further enhance its business in the near term. The Subject is a fairly large and rapidly growing company with over 120 staff in its operations Overall, we regard that the Subject's management capability is average. This indicates that the Subject has greater potential to improve its business performance and raising income for the Subject.

We noted that both the turnover and profits have increased compared to the previous year. The higher profit could be due to increase in turnover and better control over its operating costs. Return on shareholders' funds of the Subject was at an acceptable range which indicated that the management was efficient in utilising its funds to generate income. The Subject is in good liquidity position with its current liabilities well covered by it current assets. Hence, it has sufficient working capital to meet its short term financial obligations. The high gearing ratio clearly implied that the Subject was supported by more debt than equity. Thus, the Subject is exposed to high financial risk. Given a positive net worth standing at USD 57,382,606, the Subject should be able to maintain its business in the near terms.

Overall, the Subject's payment habit is good as the Subject has a good credit control and it could be taking advantage of the cash discounts while maintaining a good reputation with its creditors.

The industry shows an upward trend and this trend is very likely to sustain in the near terms.

In view of the above, we recommend credit be granted to the Subject with close monitoring.

PROFIT AND LOSS ACCOUNT

THE FINANCIAL STATEMENTS WERE PREPARED IN ACCORDANCE WITH SINGAPORE FINANCIAL REPORTING STANDARDS.

MITSUBISHI CORPORATION

Financial Year End	2015-03-31	2014-03-31	2013-03-31	2012-03-31	2011-03-31
Months	12	12	12	12	12
Consolidated Account	Company	Company	Company	Company	Company
Audited Account	YES	YES	YES	YES	YES
Unqualified Auditor's Report (Clean Opinion)	YES	YES	YES	YES	YES
Financial Type	FULL	FULL	FULL	FULL	FULL
Currency	USD	USD	USD	USD	USD
TURNOVER	648,158,433	648,044,958	646,847,535	984,801,787	807,286,317
	----------------	----------------	----------------	----------------	----------------
Total Turnover	648,158,433	648,044,958	646,847,535	984,801,787	807,286,317
Costs of Goods Sold	(616,617,677)	(631,045,054)	(623,479,704)	(953,617,458)	(785,992,954)
	----------------	----------------	----------------	----------------	----------------
Gross Profit	31,540,756	16,999,904	23,367,831	31,184,329	21,293,363
	----------------	----------------	----------------	----------------	----------------
PROFIT/(LOSS) FROM OPERATIONS	6,140,063	(2,579,826)	(501,672)	11,859,472	5,849,509
	----------------	----------------	----------------	----------------	----------------
PROFIT/(LOSS) BEFORE TAXATION	6,140,063	(2,579,826)	(501,672)	11,859,472	5,849,509
Taxation	(60,604)	-	(76,675)	(1,972,610)	(1,466,549)
	----------------	----------------	----------------	----------------	----------------
PROFIT/(LOSS) AFTER TAXATION	6,079,459	(2,579,826)	(578,347)	9,886,862	4,382,960
	----------------	----------------	----------------	----------------	----------------
RETAINED PROFIT/(LOSS) BROUGHT FORWARD
As previously reported	51,303,147	53,882,973	54,461,320	44,574,458	40,191,498
	----------------	----------------	----------------	----------------	----------------
As restated	51,303,147	53,882,973	54,461,320	44,574,458	40,191,498
	----------------	----------------	----------------	----------------	----------------
PROFIT AVAILABLE FOR APPROPRIATIONS	57,382,606	51,303,147	53,882,973	54,461,320	44,574,458
	----------------	----------------	----------------	----------------	----------------
RETAINED PROFIT/(LOSS) CARRIED FORWARD	57,382,606	51,303,147	53,882,973	54,461,320	44,574,458
	=============	=============	=============	=============	=============
INTEREST EXPENSE (as per notes to P&L)
Bank overdraft	88,464	134,331	198,817	247,769	345,517
Term loan / Borrowing	147,897	203,911	908,790	498,666	547,931
Others	396,044	484,713	40,616	318,123	417,686
	----------------	----------------	----------------	----------------	----------------
	632,405	822,955	1,148,223	1,064,558	1,311,134
	=============	=============	=============	=============	=============
DEPRECIATION (as per notes to P&L)	454,071	345,701	361,391	409,714	293,908
	----------------	----------------	----------------	----------------	----------------
	454,071	345,701	361,391	409,714	293,908
	=============	=============	=============	=============	=============

BALANCE SHEET

ASSETS EMPLOYED:
FIXED ASSETS	4,045,682	2,996,462	2,673,449	2,977,386	2,314,061
Others	652,487	652,487	652,487	652,487	652,487
	----------------	----------------	----------------	----------------	----------------
TOTAL INTANGIBLE ASSETS	652,487	652,487	652,487	652,487	652,487
	----------------	----------------	----------------	----------------	----------------
TOTAL LONG TERM ASSETS	4,698,169	3,648,949	3,325,936	3,629,873	2,966,548
Stocks	2,618,954	2,082,679	2,220,420	2,451,075	1,434,062
Contract work-in-progress	18,154	219,320	11,678	-	-
Trade debtors	77,004,598	84,960,590	92,316,510	83,884,929	81,074,875
Other debtors, deposits & prepayments	127,326,840	181,663,313	193,964,543	241,100,421	207,639,033
Amount due from related companies	11,438,311	9,073,744	-	4,863,901	-
Cash & bank balances	32,726,617	19,585,546	20,008,197	15,682,805	19,019,303
Others	-	-	-	397,239	3,047
	----------------	----------------	----------------	----------------	----------------
TOTAL CURRENT ASSETS	251,133,474	297,585,192	308,521,348	348,380,370	309,170,320
	----------------	----------------	----------------	----------------	----------------
TOTAL ASSET	255,831,643	301,234,141	311,847,284	352,010,243	312,136,868
	=============	=============	=============	=============	=============
CURRENT LIABILITIES
Trade creditors	80,323,546	66,232,804	64,488,252	92,235,888	78,517,685
Other creditors & accruals	16,782,364	30,066,562	44,807,716	17,564,466	14,027,238
Bank overdraft	20,709,910	15,832,768	23,852,558	24,168,302	165,156,888
Short term borrowings/Term loans	21,872,589	35,602,589	39,188,533	-	-
Other borrowings	52,189,270	89,729,784	84,985,053	116,155,899	-
Amounts owing to related companies	5,781,532	4,749,657	-	44,757,510	-
Provision for taxation	574,066	506,000	541,520	2,591,743	1,432,232
Other liabilities	140,645	7,135,715	25,564	-	8,089,289
	----------------	----------------	----------------	----------------	----------------
TOTAL CURRENT LIABILITIES	198,373,922	249,855,879	257,889,196	297,473,808	267,223,332
	----------------	----------------	----------------	----------------	----------------
NET CURRENT ASSETS/(LIABILITIES)	52,759,552	47,729,313	50,632,152	50,906,562	41,946,988
	----------------	----------------	----------------	----------------	----------------
TOTAL NET ASSETS	57,457,721	51,378,262	53,958,088	54,536,435	44,913,536
	=============	=============	=============	=============	=============
Retained profit/(loss) carried forward	57,382,606	51,303,147	53,882,973	54,461,320	44,574,458
	----------------	----------------	----------------	----------------	----------------
TOTAL RESERVES	57,382,606	51,303,147	53,882,973	54,461,320	44,574,458
	----------------	----------------	----------------	----------------	----------------
SHAREHOLDERS' FUNDS/EQUITY	57,382,606	51,303,147	53,882,973	54,461,320	44,574,458
Deferred taxation	75,115	75,115	75,115	75,115	339,078
	----------------	----------------	----------------	----------------	----------------
TOTAL LONG TERM LIABILITIES	75,115	75,115	75,115	75,115	339,078
	----------------	----------------	----------------	----------------	----------------
	57,457,721	51,378,262	53,958,088	54,536,435	44,913,536
	=============	=============	=============	=============	=============

FINANCIAL RATIO

TYPES OF FUNDS
Cash	32,726,617	19,585,546	20,008,197	15,682,805	19,019,303
Net Liquid Funds	12,016,707	3,752,778	(3,844,361)	(8,485,497)	(146,137,585)
Net Liquid Assets	50,140,598	45,646,634	48,411,732	48,455,487	40,512,926
Net Current Assets/(Liabilities)	52,759,552	47,729,313	50,632,152	50,906,562	41,946,988
Net Tangible Assets	56,805,234	50,725,775	53,305,601	53,883,948	44,261,049
Net Monetary Assets	50,065,483	45,571,519	48,336,617	48,380,372	40,173,848
PROFIT & LOSS ITEMS
Earnings Before Interest & Tax (EBIT)	0	(1,756,871)	646,551	12,924,030	7,160,643
Earnings Before Interest, Taxes, Depreciation And Amortization (EBITDA)	7,226,539	(1,411,170)	1,007,942	13,333,744	7,454,551
BALANCE SHEET ITEMS
Total Borrowings	94,771,769	141,165,141	148,026,144	140,324,201	165,156,888
Total Liabilities	198,449,037	249,930,994	257,964,311	297,548,923	267,562,410
Total Assets	255,831,643	301,234,141	311,847,284	352,010,243	312,136,868
Net Assets	57,457,721	51,378,262	53,958,088	54,536,435	44,913,536
Net Assets Backing	57,382,606	51,303,147	53,882,973	54,461,320	44,574,458
Shareholders' Funds	57,382,606	51,303,147	53,882,973	54,461,320	44,574,458
Total Share Capital	0	0	0	0	0
Total Reserves	57,382,606	51,303,147	53,882,973	54,461,320	44,574,458
LIQUIDITY (Times)
Cash Ratio	0.16	0.08	0.08	0.05	0.07
Liquid Ratio	1.25	1.18	1.19	1.16	1.15
Current Ratio	1.27	1.19	1.20	1.17	1.16
WORKING CAPITAL CONTROL (Days)
Stock Ratio	1	1	1	1	1
Debtors Ratio	43	48	52	31	37
Creditors Ratio	48	38	38	35	36
SOLVENCY RATIOS (Times)
Gearing Ratio	1.65	2.75	2.75	2.58	3.71
Liabilities Ratio	3.46	4.87	4.79	5.46	6.00
Times Interest Earned Ratio	10.71	(2.13)	0.56	12.14	5.46
Assets Backing Ratio	-	-	-	-	-
PERFORMANCE RATIO (%)
Operating Profit Margin	0.95	(0.40)	(0.08)	1.20	0.72
Net Profit Margin	0.94	(0.40)	(0.09)	1.00	0.54
Return On Net Assets	11.79	(3.42)	1.20	23.70	15.94
Return On Capital Employed	8.59	(2.59)	0.82	16.29	3.40
Return On Shareholders' Funds/Equity	10.59	(5.03)	(1.07)	18.15	9.83
Dividend Pay Out Ratio (Times)	0	0	0	0	0
NOTES TO ACCOUNTS
Contingent Liabilities	0	0	0	0	0

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.65.67
UK Pound	1	Rs.101.02
Euro	1	Rs.71.35

INFORMATION DETAILS

Analysis Done by :	KAS
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%)

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