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MIRA INFORM REPORT
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Report No. : |
497036 |
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Report Date : |
10.03.2018 |
IDENTIFICATION DETAILS
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Name : |
MITSUI & CO PLANT SYSTEMS LTD |
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Registered Office : |
Shiodome Sumitomo Bldg 26F, 1-9-2 Higashi-Nihombashi Minatoku
Tokyo 105-0021 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2017 |
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Date of Incorporation : |
April 2007 |
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Com. Reg. No.: |
Tokyo-Minatoku) 057580 |
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Legal Form : |
Limited Company (Kabushiki Kaisha) |
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Line of Business : |
Import, Export, Wholesale of Plant Units, Power Systems,
Transportation Systems |
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No. of Employees : |
324 |
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+ |
Low Risk |
Business dealings permissible with low
risk of default |
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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
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Country Name |
Previous Rating (30.09.2017) |
Current Rating (31.12.2017) |
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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 2017 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 first country to ratify the TPP in
December 2016; the United States signaled its withdrawal from the TPP in
January 2017, and in November 2017 the remaining 11 countries agreed on the
core elements of a modified agreement, which they renamed the Comprehensive and
Progressive Agreement for Trans-Pacific Partnership (CPTPP).
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Source
: CIA |
Company
name & address
MITSUI & CO PLANT SYSTEMS LTD
REGD NAME: Mitsui Bussan
Plant System KK
MAIN OFFICE: Shiodome Sumitomo Bldg 26F, 1-9-2 Higashi-Nihombashi Minatoku Tokyo 105-0021 Japan
Tel:
03-6218-3000 Fax: 03-6218-3450
URL: http://www.plantsystems.mitsui.co.jp
E-mail: info@plantsystems.mitsui.co.jp
ACTIVITIES: Import, export, wholesale of plant units,
power systems, transportation systems
BRANCHES: Sapporo,
Sendai, Nagoya, Osaka, other (tot 20)
OVERSEAS: Jakarta
(Indonesia)
OFFICERS: TATSUO KITA, PRES Koichiro Fukuhara, v
pres
Yuji Hata, dir Masahiko
Fukui, dir
Toshiaki Muroyuki, dir Nobuhiko Kaneko, dir
Yen Amount: In million Yen,
unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 165,741 M
PAYMENTS REGULAR CAPITAL Yen 1,555 M
TREND SLOW WORTH Yen
3,901 M
STARTED 1995 EMPLOYES 324
COMMENT: TRADING HOUSE SPECIALIZING IN PLANT, POWER & TRANSPORTATION UNITS, WHOLLY OWNED BY MITSUI & CO. FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.
HIGHLIGHTS
The subject company was established in Apr/2007 by the merger of four Mitsui group firms: Mitsui & Co Project Corp, Mitsui Bussan Plant & Project, Mitsui & Co Power Systems, Mitsui Bussan Transportation Systems. The merger was intended to integrate group operations to avoid redundant operations. This is a trading house specializing in energy plants, power systems and transportation units. In 2007, transferred from the parent, Mitsui & Co Ltd, major portion of power system units operations. The firm concluded export contract with Hydrochem (S) Pte Ltd, a wholly-owned subsidiary of Hyflux Ltd, in Singapore, on June 13, 2012, for the supply of key components to be used for Singapore’s largest membrane-based seawater desalination plant, Tuaspring Desalination Plant, located in Tuas, the western region of Singapore. Has an office in Jakarta Indonesia. Domestic clients include major electric powers, railway companies, & chemical mfrs, other, nationwide.
FINANCIAL
INFORMATION
The sales volume for Mar/2017 fiscal term amounted to Yen 165,741 million, a 23% fall from Yen 214,658 million in the previous term. The recurring profit was posted at Yen 2,626 million and the net profit at Yen 1,771 million, respectively, compared with Yen 3,824 million recurring profit, and Yen 2,484 million net profit, respectively, a year ago.
For the current term ending Mar 2018 the recurring profit is projected at Yen 2,700 and the net profit at Yen 1,800 million, respectively, on a 3% rise in turnover, to Yen 170,700 million.
The financial situation is considered FAIR and good for ORDINARY business engagements. Max credit limit is estimated at Yen 232.7 million, on 30 days normal terms.
REGISTRATION
Date Registered: Apr 2007
Regd No.:
(Tokyo-Minatoku)
057580
Legal Status: Limited
Company (Kabushiki Kaisha)
Authorized: 124,400
shares
Issued:
31,100 shares
Sum: Yen
1,555 million
Major shareholders (%): Mitsui & Co*(100)
*.. Leading general trading company vying with Mitsubishi Corp for top position, founded 1947, capital Yen 341,482 million, listed Tokyo S/E, sales Yen 4,363,963 million, operating profit Yen 260,440 million, recurring profit Yen 460,791 million, net profit Yen 306.136 million, total assets Yen 11,493,702 million, net worth Yen 3,965,707 million, employees 42,316, pres Tatsuo Yasunaga
Nothing detrimental is known as to the commercial morality of executives.
OPERATION
Activities: General trading house for import, export and wholesale of (--100%):
Plant Units: energy & petrochemical plants, heavy machinery for ferrous & nonferrous industries, industrial systems, machinery for infrastructure fields;
Power System Units: power generation, transmission & substations, energy solution, captive power generation, cogeneration, renewable energy;
Transportation System Units: railway facility, urban transportation system, other.
Clients: [Mfrs, steel makers, chemical mfrs] Tosoh Ltd, JR East, Tokyo Electric Power, Mitsui & Co, JFE Steel, Seven-Eleven Japan, Hyundai, Hokkaido Electric Power, Tohoku Electric Power, Seven Eleven Japan, Soma Kyodo Power Co, Japan Atomic Power Co, other..
No. of accounts: 1,000
Domestic areas of activities: Nationwide
Suppliers: [Mfrs, wholesalers] IHI Corp, GE, Tosoh Ltd, Toray Corp, Mitsui & Co, Plasser, Toshiba Corp, Ebara Corp, Hitachi Ltd, Mitsubishi Heavy Industries Compressor, other.
Payment
record: Regular
Location: Business area in Tokyo. Office premises at the caption address are leased and maintained satisfactorily.
Bank References:
SMBC (Hibiya)
Mizuho Bank (Ohtemachi)
Relations: Satisfactory
FINANCES
(In Million Yen)
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Terms Ending: |
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31/03/2018 |
31/03/2017 |
31/03/2016 |
31/03/2015 |
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Annual
Sales |
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170,700 |
165,741 |
214,658 |
213,031 |
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Recur.
Profit |
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2,700 |
2,626 |
3,824 |
1,865 |
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Net
Profit |
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1,800 |
1,771 |
2,484 |
1,115 |
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Total
Assets |
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166,906 |
151,620 |
145,483 |
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Net
Worth |
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3,901 |
4,659 |
4,195 |
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Capital,
Paid-Up |
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1,555 |
1,555 |
1,555 |
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Div.Ttl
in Million (¥) |
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2,483 |
1,114 |
881 |
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<Analytical Data> |
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(%) |
(%) |
(%) |
(%) |
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S.Growth Rate |
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2.99 |
-22.79 |
0.76 |
20.76 |
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Current Ratio |
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.. |
.. |
.. |
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N.Worth Ratio |
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2.34 |
3.07 |
2.88 |
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N.Profit/Sales |
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1.05 |
1.07 |
1.16 |
0.52 |
Notes: Forecast (or estimated) 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 65.07 |
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1 |
INR 89.85 |
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Euro |
1 |
INR 80.16 |
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YEN |
1 |
INR 0.61 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
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Analysis Done by
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DIV |
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Report Prepared
by : |
TPT |
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
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Payment
record
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Litigation
against the subject
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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.