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MIRA INFORM REPORT
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Report No. : |
486915 |
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Report Date : |
18.01.2018 |
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) : |
31.03.2017 |
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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 : |
A general trading house for Import, export
and wholesale. |
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No. of Employees : |
5,217 |
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd
January 2017)
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MIRA’s Rating : |
A++ |
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Credit Rating |
Explanation |
Rating Comments |
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A++ |
Minimum Risk |
Business dealings permissible with minimum
risk of default |
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Status : |
Excellent |
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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
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Country Name |
Previous Rating (30.06.2017) |
Current Rating (30.09.2017) |
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Japan |
A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low Risk |
A2 |
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Moderately Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderately High Risk |
C1 |
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High Risk |
C2 |
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Very High Risk |
D |
JAPAN - ECONOMIC OVERVIEW
Over the past 70 years, government-industry cooperation, a strong work
ethic, mastery of high technology, and a comparatively small defense allocation
(slightly less than 1% of GDP) have helped Japan develop an advanced economy.
Two notable characteristics of the post-World War II 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 have significantly eroded under the dual
pressures of global competition and domestic demographic change.
Measured on a purchasing power parity basis that adjusts for price
differences, Japan in 2016 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. For three postwar decades, overall real economic
growth was impressive - a 10% average in the 1960s, 5% in the 1970s, and 4% in
the 1980s. Growth slowed markedly in the 1990s, averaging just 1.7%, largely
because of the aftereffects of inefficient investment and the collapse of an
asset price bubble in the late 1980s, which entailed considerable 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.
Japan enjoyed an 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. Led by
the Bank of Japan’s aggressive monetary easing, Japan is making modest progress
in ending deflation, but demographic decline – a low birthrate and an aging,
shrinking population – poses a major long-term challenge for the economy. The
government currently faces the quandary of balancing its efforts to stimulate
growth and institute economic reforms with the necessity of addressing its
sizable public debt, which stands at 235% of GDP. To help raise government
revenue, Japan adopted legislation in 2012 to gradually raise the consumption
tax rate. However, the first such increase, in April 2014, led to another
recession, so Prime Minister ABE has twice postponed the next increase, now scheduled
for October 2019. Structural reforms to unlock productivity are seen as central
to strengthening the economy in the long-run.
Scarce in critical natural resources, Japan has long been dependent on
imported energy and raw materials. After the complete shutdown of Japan’s
nuclear reactors following the earthquake and tsunami disaster in 2011, Japan's
industrial sector has become even more dependent than before on imported fossil
fuels. However, ABE’s government is seeking to restart nuclear power plants
that meet strict new safety standards and is emphasizing nuclear energy’s
importance as a base-load electricity source. In August 2015, Japan
successfully restarted one nuclear reactor at the Sendai Nuclear Power Plant in
Kagoshima prefecture, and several other reactors around the country have since
resumed operations; however, opposition from local governments has delayed
several more restarts that remain pending. Reforms of the electricity and gas
sectors, including full liberalization of Japan’s energy market in April 2016
and gas market in April 2017, constitute an important part of Prime Minister
Abe’s economic program.
In October 2015, Japan and 11 trading partners reached agreement on the
Trans-Pacific Partnership (TPP), a pact that had promised to open Japan's
economy to increased foreign competition and create new export opportunities
for Japanese businesses. Japan was the second country to ratify the TPP in
December 2016; the United States signaled its withdrawal from the TPP on
January 23, 2017, and as of April 2017 the agreement has not gone into effect.
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Source
: CIA |
Company
name & address
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
(27) nationwide
OVERSEAS: 194
(subsidiaries, offices, branch offices & representatives)
CHIEF EXEC: TAKEHIKO
KAKIUCHI, PRES & CEO
Yen Amount: In million Yen, unless otherwise
stated
SUMMARY
FINANCES FAIR A/SALES Yen 6,425,761 M
PAYMENTS REGULAR CAPITAL Yen 204,447 M
TREND SLOW WORTH Yen
4,917,247 M
STARTED 1950 EMPLOYES 5,217
COMMENT
LARGEST GENERAL TRADING HOUSE OF JAPAN. FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.
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 firm boasts the largest interests in Asia in natural gas. Group companies in the food distribution business include Mitsubishi Shokuhin, the top-ranked wholesaler, and Lawson, a leading convenience store operator. One of the leaders also in chemical products and machinery including automobiles sold In Asia.
FINANCIAL
INFORMATION
The sales volume for Mar/2017 fiscal term amounted to Yen 6,425,761 million, a 7% fall from Yen 6,925,582 million in the previous tem. The recurring profit was posted at Yen 601,440 million and the net profit at Yen 440,293 million, respectively, compared with Yen 92,823 million recurring loss and Yen 149,395 million net losses, respectively, a year ago.
For the current term ending Mar/2018 the recurring profit is projected at Yen 710,000 million and the net profit at Yen 470,000 million, respectively, on a 10% rise in turnover, to Yen 7,100,000 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:
1,590,076,851 shares
Sum: Yen
204,447 million
Major shareholders (%): Japan Trustee Services Bank T (8.2), Master Trust Bank of Japan T (4.8), Tokio Marine & Nichido Fire Ins (4.6), Meiji Yasuda Life Ins (4.0), MTBJ (Mitsubishi Heavy Ind) (2.0), Ichigo Trust PTE (1.8), Bank of New York Mellon SANV10 (1.4), Japan Trustee Services T9 (1.4), Nomura T (MUTB) (1.3), State Street Bank West Treaty (1.2); foreign owners (32.4)
No. of shareholders: 235,011
Listed on the S/Exchange (s) of: Tokyo, Nagoya
Managements: Ken Kobayashi,
ch; Takehiko Kakiuchi, pres; Eiichi Tanabe, v pres; Kazuyuki Mori, mgn dir;
Yahuhito Hirota, mgn dir; Kazuyuki Dan, mgn dir; Ryozo Kato, dir; Hidehiro
Konno, dir; Akihiko Nishiyama, dir; Hideaki Omiya, dir; Toshiko Oka, 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
OPERATION
Activities: A general
trading house for Import, export and wholesale;
(Sales
by Divisions): Global environment & infrastructure business (1%), Industrial
finance (2%), Energy (19%), Metals (15%), Others (64%)
Overseas
Sales Ratio (41%)
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, Mitsubishi Food, Cosmo Oil, 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, Showa-Shell Oil, Hitachi Construction Machinery, 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)
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Terms Ending: |
31/03/2018 |
31/03/2017 |
31/03/2016 |
31/03/2015 |
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Annual
Sales |
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7,100,000 |
6,425,761 |
6,925,582 |
7,669,482 |
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Recur.
Profit |
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710,000 |
601,440 |
-92,823 |
572,722 |
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Net
Profit |
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470,000 |
440,293 |
-149,395 |
400,574 |
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Total
Assets |
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15,753,557 |
14,916,256 |
16,774,366 |
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Current
Assets |
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6,467,265 |
6,557,191 |
7,608,690 |
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Current
Liabs |
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4,677,842 |
4,433,237 |
4,978,975 |
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Net
Worth |
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4,917,247 |
4,592,516 |
5,570,477 |
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Capital,
Paid-Up |
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204,447 |
204,447 |
204,447 |
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Div.Ttl
in Million (¥) |
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87,170 |
88,222 |
127,437 |
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<Analytical Data> |
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(%) |
(%) |
(%) |
(%) |
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S.Growth Rate |
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10.49 |
-7.22 |
-9.70 |
0.45 |
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Current Ratio |
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.. |
138.25 |
147.91 |
152.82 |
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N.Worth Ratio |
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.. |
31.21 |
30.79 |
33.21 |
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R.Profit/Sales |
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10.00 |
9.36 |
-1.34 |
7.47 |
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N.Profit/Sales |
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6.62 |
6.85 |
-2.16 |
5.22 |
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Return On Equity |
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.. |
8.95 |
-3.25 |
7.19 |
Notes: Forecast (or estimate) figures for the 31/03/2018
fiscal term.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
INR 63.98 |
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1 |
INR 88.13 |
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Euro |
1 |
INR 78.35 |
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YEN |
1 |
INR 0.57 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
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Analysis Done by
: |
VIV |
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Report Prepared
by : |
SYL |
RATING EXPLANATIONS
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Credit Rating |
Explanation |
Rating Comments |
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A++ |
Minimum Risk |
Business dealings permissible with minimum
risk of default |
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A+ |
Low Risk |
Business dealings permissible with low
risk of default |
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A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
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B |
Medium Risk |
Business dealings permissible on a regular
monitoring basis |
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C |
Medium High Risk |
Business dealings permissible preferably
on secured basis |
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D |
High Risk |
Business dealing not recommended or on
secured terms only |
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NB |
New Business |
No recommendation can be done due to
business in infancy stage |
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NT |
No Trace |
No recommendation can be done as the
business is not traceable |
NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.
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 are as follows:
·
Financial
condition covering various ratios
·
Company
background and operations size
·
Promoters
/ Management background
·
Payment
record
·
Litigation
against the subject
·
Industry
scenario / competitor analysis
·
Supplier
/ Customer / Banker review (wherever available)
This report is issued at
your request without any risk and responsibility on the part of MIRA INFORM
PRIVATE LIMITED (MIPL) or its officials.