MIRA INFORM REPORT

 

 

Report No. :

312484

Report Date :

02.04.2015

 

IDENTIFICATION DETAILS

 

Name :

NTT DATA CORPORATION

 

 

Registered Office :

Toyosu Center Bldg, 3-3-3 Toyosu Kotoku Tokyo 135-6001

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2014

 

 

Date of Incorporation :

May, 1988

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Management of Data Communication, System Integration, Network Service.

 

 

No. of Employees :

11,000

 

 

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

 


 

Maximum Credit Limits :

YEN 36,094.7 MILLION

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Regular

 

 

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 – December 31, 2014

 

Country Name

Previous Rating

(30.09.2014)

Current Rating

(31.12.2014)

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 and address

 

NTT DATA CORPORATION

 

REGD NAME:               KK NTT DATA

 

MAIN OFFICE:              Toyosu Center Bldg, 3-3-3 Toyosu Kotoku Tokyo 135-6001 JAPAN

                                                Tel: 03-5546-8202     Fax: information not available    

 

URL:                             http://www.nttdata.com

E-Mail address:            (thru the URL)

 

 

ACTIVITIES

 

Management of data communication, system integration, network service

 

 

BRANCHES

 

Tokyo, Osaka, Kyoto, Hakata, other

 

 

OVERSEAS         

 

China, U.S.A., Brazil, Austria, Denmark, France, Italy Germany, Switzerland, Turkey, UK, Malaysia, Vietnam, Australia, India, other

 

 

CHIEF EXEC

 

TOSHIO IWAMOTO, PRES

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY    

 

FINANCES        FAIR                 A/SALES          Yen 1,343.772 M

PAYMENTS      REGULAR         CAPITAL           Yen 142,520 M

TREND             UP                    WORTH            Yen 709,818 M

STARTED         1988                 EMPLOYES      11,000

 

 

COMMENT

 

SYSTEM INTEGATION COMPANY. (IT IS A SUBSIDIAY OF NTT GROUP.)

 

FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

MAX CREDIT LIMIT: YEN 36,094.7 MILLION, 30 DAYS NORMAL TERMS

 

Business

Terms Ending

Annual Sales*

R.Profit*

N.Profit*

S.Growth

Net Worth*

   Results:

31/03/2011

1,161,962

75,779

37,313

(%)

630,317

(Consolidated)

31/03/2012

1,251,177

75,588

30,446

7.68

639,750

31/03/2013

1,301,941

81,870

1,582

4.06

684,207

31/03/2014

1,343,772

62,153

2,130

3.21

709,818

31/03/2015

1,460,000

75,000

37,000

8.65

746,818

 

Unit: In Million Yen

Forecast figures for the 2015 fiscal term.

 

 

HIGHLIGHTS

 

The subject company is one of biggest subsidiaries of NTT (Nippon Telegraph and Telephone) Group which was established in 1967. It is a Japanese system integration company and was started as Data communication division of NTT in 1988, and now becomes the largest of the IT Service companies headquartered in Japan. It is a publicly traded company, but is about 54 percent owned by NTT. Business areas are in national and local governments, financial and telecommunication sectors.

 

 

FINANCIAL INFORMATION

 

The sales volume for March 2014 fiscal term amounted to Yen 1,343,772 million, a 3% up from Yen 1,301,941 million in the previous term.  The recurring profit was posted at Yen 62,153 million and the net profit at Yen 2,130 million, respectively, compared with Yen 81,870 million recurring profit and Yen 1,582 million net profit, respectively, a year ago.

 

For the fiscal year of 2015, while by and large corporations are likely to remain cautious about IT investments, they forecast that the group company’s financial results will be affected by factors such as a net sales increase in overseas subsidiaries.  Accordingly, they expect sales to be Yen 1,460,000 million, a 8% growth compared with the current fiscal period.


Recurring profit is expected to increase to 12.8 billion yen from the current year, resulting from a profit increase accompanying the net sales increase by the effects of the promotion of remarketing and improvement of the cost ratio as well as a restraint of unprofitable projects.

Final results are yet to be released.

 

The financial situation is considered FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 36,094.7 million, on 30 days normal terms.

 

 

REGISTRATION

           

Date Registered:           May 1988

Legal Status:                Limited Company (Kabushiki Kaisha)

Authorized:                              1,122 million shares

Issued:                         280.5 million shares

Sum:                            Yen 142,520 million

 

Major shareholders (%): Nippon Telegraph and Telephone Corp (54), The Master Trust Bank of Japan Ltd. (5), Japan Trustee Service Bank Ltd. (4), BNP Paribas Japan (1),Employees’ S/Holding Assn(1), other

 

No. of shareholders: 92,177

 

Listed on the S/Exchange (s) of: Tokyo Stock Exchange (1st section)

 

Managements: TOSHIO IWAMOTO, PRES; Eiji Yamada, v.pres; Satoshi Kurishima, dir; Masanori Shiinaa, dir; Hiroshi Honma, dir; Eiji Ueki, dir; Yo Takaya, dir; Hironobu Sagae, dir;

 

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

 

Related companies: Integrate System Service Corp, NTT DATA i Corp, NTT DATA Itex Corp, Construction-ec.com Corp, Newson Corp, Net Leasing Corp, Bestcom Solutions Corp, other

 

 

OPERATION

           

Activities: Management of data communication, system integration, network service. It is a Subsidiary of NTT Group.

           

Clients: [Mfrs, wholesalers] Financial institutions, National and Municipal Government,  other

No. of accounts: Unavailable

Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Makers of domestic hardware, software houses, other

 

Payment record: Regular

 

Location: Business area in Tokyo.  Office premises at the caption address are ^ and maintained satisfactorily.

 

Bank References:

            Mizuho Bank

            SMBC

            Relations: Satisfactory

 

 

FINANCES

(In Million Yen)

 

FINANCES: (Consolidated in million yen)

 

 

 

Terms Ending:

31/03/2014

31/03/2013

INCOME STATEMENT

 

 

  Annual Sales

1,343,772

1,301,941

 

  Cost of Sales

1,031,213

980,524

 

      GROSS PROFIT

312,559

321,417

 

  Selling & Adm Costs

249,975

235,720

 

      OPERATING PROFIT

62,584

85,697

 

  Non-Operating P/L

-431

-3,827

 

      RECURRING PROFIT

62,153

81,870

 

      NET PROFIT

2,130

1,582

BALANCE SHEET

 

 

  Cash

 

180,430

152,504

 

  Receivables

344,221

313,600

 

  Inventory

22,645

24,104

 

  Securities, Marketable

2

2

 

  Other Current Assets

121,908

111,051

 

      TOTAL CURRENT ASSETS

669,206

601,261

 

  Property & Equipment

312,697

297,169

 

  Intangibles

562,177

496,852

 

  Investments, Other Fixed Assets

145,860

129,027

 

      TOTAL ASSETS

1,689,940

1,524,309

 

  Payables

97,837

92,206

 

  Short-Term Bank Loans

66,387

11,441

 

 

 

 

 

  Other Current Liabs

290,490

293,642

 

      TOTAL CURRENT LIABS

454,714

397,289

 

  Debentures

 

 

 

  Long-Term Bank Loans

87,298

61,903

 

  Reserve for Retirement Allw

146,572

119,460

 

  Other Debts

291,538

261,450

 

      TOTAL LIABILITIES

980,122

840,102

 

      MINORITY INTERESTS

 

 

Common stock

142,520

142,520

 

Additional paid-in capital

139,300

139,300

 

Retained earnings

384,922

378,951

 

Evaluation p/l on investments/securities

 

 

 

Others

43,076

23,436

 

Treasury stock, at cost

 

 

 

      TOTAL S/HOLDERS` EQUITY

709,818

684,207

 

      TOTAL EQUITIES

1,689,940

1,524,309

CONSOLIDATED CASH FLOWS

 

 

Terms ending:

31/03/2014

31/03/2013

 

Cash Flows from Operating Activities

 

234,524

161,327

 

Cash Flows from Investment Activities

-189,687

-115,044

 

Cash Flows from Financing Activities

-19,345

-35,667

 

Cash, Bank Deposits at the Term End

 

207,213

176,963

ANALYTICAL RATIOS            Terms ending:

31/03/2014

31/03/2013

 

Net Worth (S/Holders' Equity)

709,818

684,207

 

Current Ratio (%)

147.17

151.34

 

Net Worth Ratio (%)

42.00

44.89

 

Recurring Profit Ratio (%)

4.63

6.29

 

Net Profit Ratio (%)

0.16

0.12

 

 

Return On Equity (%)

0.30

0.23

           


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.62.59

UK Pound

1

Rs.92.46

Euro

1

Rs.67.51

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

Report Prepared by :

NIT

 

               

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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