MIRA INFORM REPORT

 

 

Report No. :

312486

Report Date :

14.03.2015

 

IDENTIFICATION DETAILS

 

Name :

NIPPON TELEGRAPH AND TELEPHONE CORPORATION

 

 

Registered Office :

Ohtemachi First Sqaure 5-1 Ohtemachi, Chiyoda-Ku 100-811Tokyo

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2014

 

 

Date of Incorporation :

April., 1985

 

 

Com. Reg. No.:

010001065142 

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Holding Company of NTT group which provides nationwide telecom services.

 

 

No. of Employees :

2,850 (239,750 on consolidated basis)

 

 

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 490,328.3 MILLION

 

 

Status :

Good

 

 

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

 

NIPPON TELEGRAPH AND TELEPHONE CORPORATION

 

REGD NAME:   Nippon Denshi Denwa KK

 

MAIN OFFICE:              Ohtemachi First Sqaure 5-1 Ohtemachi, Chiyoda-ku 100-811Tokyo JAPAN

                                    Tel: 03-6838-5111

 

URL:                 http://www.ntt.co.jp

E-Mail address:            (thru the URL)

 

 

ACTIVITIES

 

For the NTT group as a whole, formulation of management strategies and pro motion of basic research.

 

 

BRANCHES

 

Nationwide

 

 

OVERSEAS

 

None

 

 

FACTORIES

 

None

 

 

CHIEF EXEC 

 

SATOSHI MIURA, CH; HIROO UNOHARA, PRES

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                 A/Gross Profit*             Yen 10,925,174 M

PAYMENTSREGULAR   CAPITAL                       Yen 937,950 M

TREND UP                    WORTH                        Yen 10,924,806 M

STARTED         1985                 EMPLOYEES               2,850 (239,750 on consolidated basis)

 

*NTT does not publicly disclose the line of sales and cost of sales separately.

 

 

COMMENT

 

NTT GROUP IS JAPAN LARGEST TELEGRAPH AND TELEPHONE COMPANY WHICH PROVIDES SERVICES NATIONWIDE.

 

FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

 

MAX CREDIT LIMIT: YEN 490,328.3 MILLION, 30 DAYS NORMAL TERM.

 

 

 

HIGHLIGHTS

 

The subject company was founded as a monopoly government owned corporation in 1952 and privatized in 1985 to encourage competition in telecom market. The subject company is a holding company and consists of 946 subsidiaries and 123 affiliated companies.

 

 

FINANCIAL INFORMATION

 

(*1 Below information are consolidated basis.)

 

(*2 NTT does not publicly disclose the line of sales and COS separately. Only GM is available)

 

The gross profit for March/2014 fiscal term amounted to Yen 10,925,174 million, a 2.1% up from Yen 10,700,740 million in the previous term.  The recurring profit was posted at Yen 1,294,195 million and the net profit at Yen 585,473 million, respectively, compared with Yen 1,197,647 million recurring profit and Yen 521,932 million net profit, respectively, a year ago.

 

For the current term ending March 2015 the recurring profit is projected at Yen 1,075,000 million and the net profit at Yen 529,000 million, respectively, on a 0.8% rise in gross profit, to Yen 11,010,000 million.  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 490,328.3 million, on 30 days normal terms.

 

 

REGISTRATION

           

Date Registered:　    April 1985

Regd No.:                     010001065142 

Legal Status:    Limited Company (Kabushiki Kaisha)

Authorized:                  6,192.9 million shares

Issued:             1,136.7 million shares

Sum:                  Yen 937,950 million

 

Major shareholders (%): Minister of Finance (35.7%), Japan Trustee Service(3.7%)

No. of shareholders: 812,303

Listed on the S/Exchange (s) of: Tokyo, New York

 

Managements: SATOSHI MIURA, CH; HIROO UNOHARA, PRES

Hiromichi Shinohara, vp; Jun Sawada, vp

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

 

Related companies: NTT East, NTT West, NTT Docomo and others

 

 

OPERATION

           

Activities: Holding company of NTT group which provides nationwide telecom services.

 

Clients: All users of NTT groups.

No. of accounts: Unavailable

Domestic areas of activities: Nationwide

 

Suppliers: NTT Facilities, Nihon Meccs, Kyowa Exeo, Nihon Comsys

 

Payment record: Regular

 

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

 

Bank References:

             MUFG (HQ)

            SMBC (HQ)

            Relations: Satisfactory

 

 

FINANCES

(In Million Yen)

 

FINANCES: (Consolidated in million yen)

　

　

　

　

Terms Ending:

31/03/2014

31/03/2013

INCOME STATEMENT

　

　

  Annual Sales

*assumed COS is 50%

21,850,348

21,401,480

　

  Cost of Sales

of sales.

10,925,174

10,700,740

　

      GROSS PROFIT

　

10,925,174

10,700,740

　

  Selling & Adm Costs

9,711,521

9,498,772

　

      OPERATING PROFIT

1,213,653

1,201,968

　

  Non-Operating P/L

80,542

-4,321

　

      RECURRING PROFIT

1,294,195

1,197,647

　

      NET PROFIT

　

585,473

521,932

BALANCE SHEET

　

　

  Cash

　

984,463

961,433

　

  Receivables

2,509,030

2,428,099

　

  Inventory

350,721

415,309

　

  Securities, Marketable

　

　

　

  Other Current Assets

1,016,797

864,447

　

      TOTAL CURRENT ASSETS

4,861,011

4,669,288

　

  Property & Equipment

9,839,688

9,776,687

　

  Intangibles

　

　

　

  Investments, Other Fixed Assets

5,584,250

5,103,092

　

      TOTAL ASSETS

20,284,949

19,549,067

　

  Payables

　

　

　

  Short-Term Bank Loans

269,444

77,455

　

　

　

　

　

  Other Current Liabs

　

3,407,380

3,421,934

　

      TOTAL CURRENT LIABS

3,676,824

3,499,389

　

  Debentures

　

　

　

  Long-Term Bank Loans

3,843,673

3,234,631

　

  Reserve for Retirement Allw

　

　

　

  Other Debts

　

1,839,646

2,293,044

　

      TOTAL LIABILITIES

9,360,143

9,027,064

　

      MINORITY INTERESTS

　

　

Common stock

937,950

937,950

　

Additional paid-in capital

2,827,010

2,827,612

　

Retained earnings

4,808,361

5,227,268

　

Evaluation p/l on investments/securities

　

　

　

Others

2,508,418

2,097,632

　

Treasury stock, at cost

(156,933)

(568,459)

　

      TOTAL S/HOLDERS` EQUITY

10,924,806

10,522,003

　

      TOTAL EQUITIES

20,284,949

19,549,067

CONSOLIDATED CASH FLOWS

　

　

Terms ending:

31/03/2014

31/03/2013

　

Cash Flows from Operating Activities

　

758,857

707,600

　

Cash Flows from Investment Activities

-2,106,806

-1,776,253

　

Cash Flows from Financing Activities

-622,440

-745,181

　

Cash, Bank Deposits at the Term End

　

984,463

961,433

ANALYTICAL RATIOS            Terms ending:

31/03/2014

31/03/2013

　

Net Worth (S/Holders' Equity)

10,924,806

10,522,003

　

Current Ratio (%)

132.21

133.43

　

Net Worth Ratio (%)

53.86

53.82

　

Recurring Profit Ratio (%)

5.92

5.60

　

Net Profit Ratio (%)

2.68

2.44

　

　

Return On Equity (%)

5.36

4.96

 

 

           

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.62.67

UK Pound

1

Rs.93.16

Euro

1

Rs.66.42

 

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%)

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.