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MIRA INFORM REPORT
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Report No. : |
511757 |
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Report Date : |
26.05.2018 |
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 : |
Apr 1950 |
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Com. Reg. No.: |
0100-01-008771 (Tokyo-Chiyodaku) |
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Legal Form : |
Limited Company (Kabushiki Kaisha) |
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Line of Business : |
Import, Export, Wholesale of Energy, Metals, Machinery, Chemicals,
Other |
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No. of Employees : |
77,164 |
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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Maximum Credit Limit : |
Yen 168,640.3 |
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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 (30.09.2017) |
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 - averaging 10% 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 resulted in several years of economic stagnation as firms sought 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 since 2013, supported by 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 need to address 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 a sharp contraction, so Prime Minister ABE has twice postponed the next increase, which is 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.
Under the Abe Administration, Japan’s government sought to open the country’s economy to greater foreign competition and create new export opportunities for Japanese businesses, including by joining 11 trading partners in the Trans-Pacific Partnership (TPP). Japan became the first country to ratify the TPP in December 2016, but the United States signaled its withdrawal from the agreement in January 2017. 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). Japan also reached agreement with the European Union on an Economic Partnership Agreement in July 2017, and is likely seek to ratify both agreements in the Diet this year.
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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 7,567,394 M
PAYMENTS REGULAR CAPITAL Yen 204,447 M
TREND STEADY WORTH Yen
6,265,211 M
STARTED 1950 EMPLOYES 77,164
COMMENT: LARGEST GENERAL TRADING HOUSE OF JAPAN. FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.
MAX CREDIT LIMIT: YEN 168,640.3 MILLION, 30 DAYS NORMAL TERMS
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 sales in Thailand. Due to the resource recession, shifting the focus of investment for growth to the expansion of the non-resource business since 2016.
FINANCIAL
INFORMATION
The sales volume for Mar/2018 fiscal term amounted to Yen 7,567,394 million, a 17.77% up from Yen 6,425,761 million in the previous tem. The recurring profit was posted at Yen 812,722 million and the net profit at Yen 560,173 million, respectively, compared with Yen 601,440 million recurring loss and Yen 440,293 million net losses, respectively, a year ago.
For the current term ending Mar/2019 the recurring profit is projected at Yen 760,000 million and the net profit at Yen 550,000 million, respectively, on a 2.21% fall in turnover, to Yen 7,400,000 million.
The financial situation is considered FAIR and good for ORDINARY business engagements. Max credit limit is estimated at Yen 168,640.3 million, on 30 days normal terms.
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 (8.6), Master Trust Bank of Japan T
(5.1), Tokio Marine & Nichido Fire Ins (4.6), Meiji Yasuda Life Ins (4.0),
Ichigo Trust PTE (2.2), MTBJ (Mitsubishi Heavy Industries (2.0), Japan Trustee
Services T5 (1.6), Japan Trustee Services T9 (1.5), State Street Bank West
Treaty (1.5), Japan Trustee Services T1 (1.2); foreign owners (32.6)
No. of shareholders: 230,015
Listed on the S/Exchange (s) of: Tokyo, Nagoya
Managements: Ken Kobayashi, ch;
Takehiko Kakiuchi, pres; Kazushi Okawa, mgn dir; Hiroshi Sakuma, mgn dir; Kanji
Nishiura, mgn dir; Hidemoto Mizuhara, mgn dir; Kazuyuki Masu, mgn dir; Takeshi
Hagiwara, mgn dir; Shin’ya Yoshida, mgn dir; Hiroshi Kyotani, mgn dir; Iwao
Toda, mgn 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 (18%), 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: |
31/03/2019 |
31/03/2018 |
31/03/2017 |
31/03/2016 |
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Annual
Sales |
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7,400,000 |
7,567,394 |
6,425,761 |
6,925,582 |
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Recur.
Profit |
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760,000 |
812,722 |
601,440 |
-92,823 |
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Net
Profit |
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550,000 |
560,173 |
440,293 |
-149,395 |
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Total
Assets |
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16,036,989 |
15,753,557 |
14,916,256 |
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Current
Assets |
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6,778,761 |
6,467,265 |
6,557,191 |
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Current
Liabs |
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4,916,938 |
4,677,842 |
4,433,237 |
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Net
Worth |
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6,265,211 |
4,917,247 |
4,592,456 |
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Capital,
Paid-Up |
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204,447 |
204,447 |
204,447 |
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Div.P.Share(¥) |
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100.00 |
80.00 |
50.00 |
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<Analytical Data> |
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(%) |
(%) |
(%) |
(%) |
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S.Growth Rate |
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-2.21 |
17.77 |
-7.22 |
-9.70 |
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Current Ratio |
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.. |
137.87 |
138.25 |
147.91 |
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N.Worth Ratio |
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.. |
39.07 |
31.21 |
30.79 |
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R.Profit/Sales |
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10.27 |
10.74 |
9.36 |
-1.34 |
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N.Profit/Sales |
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7.43 |
7.40 |
6.85 |
-2.16 |
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Return On Equity |
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.. |
8.94 |
8.95 |
-3.25 |
Notes: Forecast (or estimate) figures for the
31/03/2019 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 68.26 |
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1 |
INR 91.22 |
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Euro |
1 |
INR 79.88 |
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Yen |
1 |
INR 0.62 |
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 : |
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
·
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.