Fund Corporation for the Overseas Developmentof Japan’s ICT and Postal Services Inc.
(Japan ICT Fund)

Financial Statements

For the 6th fiscal year
From April 1, 2020 to March 31, 2021

Crowe Toyo & Co.
Sumitomo Fudosan Kanda Bldg.,6F
Kandamitoshirocho7,
Chiyoda-ku, Tokyo101-0053
Japan
Main +81 (3)3295 1040
Fax +81 (3)3295 1993
www.crowe.com/jp/en-us

Independent Auditors’ Report(Translation)
May 26,2021
To the Board of Directors ofFund Corporation for the Overseas Development of Japan’s ICT and Postal Services Inc.
Crowe Toyo & Co.
Tokyo Office
Akihiro Tanaka
Designated Partner
Engagement Partner
Certified Public Accountant
Hiroaki Izawa
Designated Partner
Engagement Partner
Certified Public Accountant
OpinionPursuant to Article 436 (2) (i) of the Companies Act, we have audited the accompanying financial
statements, which comprise the balance sheet as of March 31, 2021, and the statement of income, thestatement of changes in net assets and the related notes, and the supplementary schedules (hereinafter
the “financial statements, etc.”) of Fund Corporation for the Overseas Development of Japan’s ICT and
Postal Services Inc. (hereinafter the “Company”) for the 6th fiscal year from April 1, 2020 to March 31,
2021.
In our opinion, the financial statements, etc. referred to above present fairly, in all material respects, thefinancial position and the results of operations of the Company for the period, for which the financial
statements, etc. were prepared, in accordance with accounting principles generally accepted in Japan.
Rationale for the Opinion
We conducted our audit in accordance with auditing standards generally accepted in Japan. Our
responsibility with respect to auditing standards is described in “Auditor’s Responsibility in Auditing the
Financial Statements, etc.” We are independent of the Company in accordance with the ethicalrequirements that are relevant to our audit of the financial statements, etc. in Japan, and we havefulfilled our ethical responsibilities in accordance with these requirements. We believe that the audit
evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Management and the Company Auditor’s Responsibility for the Financial Statements, etc.
Management is responsible for the preparation and fair presentation of the financial statements, etc. inaccordance with accounting principles generally accepted in Japan, and for such internal control as
management determines is necessary to enable the preparation of the financial statements, etc. that are
free from material misstatements, whether due to fraud or error.
In preparing the financial statements, etc., management is responsible for assessing whether it isappropriate to prepare the financial statements, etc. with the assumption of a going concern, and inaccordance with accounting principles generally accepted in Japan, for disclosing, as necessary, mattersrelated to going concern.
The Company Auditor is responsible for overseeing the Directors’ performance of duties within themaintenance and operation of the financial reporting process.
Auditor’s Responsibility in Auditing the Financial Statement, etc.
Our responsibilities are to obtain reasonable assurance about whether the financial statements, etc. as awhole are free from material misstatement, whether due to fraud or error, and to express our opinion onthe financial statements, etc. in an auditor’s report based on our audit from an independent point of view.
Misstatements can arise from fraud or error and are considered material if, individually or in theaggregate, they could reasonably be expected to influence the decisions of users of these financial
statements, etc.
In accordance with auditing standards generally accepted in Japan, we exercise professional judgment andmaintain professional skepticism throughout the audit process to perform the following:
Identify and assess the risks of material misstatement, whether due to fraud or error, and design andperform audit procedures responsive to those risks. Selecting audit procedures to be applied is at thediscretion of the auditor. Obtain audit evidence that is sufficient and appropriate to provide a basis forour opinion.
In making those risk assessments, we consider internal control relevant to the audit in order to design
audit procedures that are appropriate in the circumstances, while the audit objective of the financial
statements, etc. is not for the purpose of expressing an opinion on the effectiveness of the entity’s
internal control.
Evaluate the appropriateness of accounting policies used by management and their method of
application, as well as the reasonableness of accounting estimates made by management and related
notes thereto.
Conclude on the appropriateness of preparing the financial statements, etc. with the assumption of agoing concern by management, and based on the audit evidence obtained, whether a material
uncertainty exists related to events or conditions that may cast significant doubt on the entity’s ability
to continue as a going concern. If we conclude that a material uncertainty exists, we are required to
draw attention in our auditor’s report to the notes to the financial statements, etc. or, if the notes tothe financial statements, etc. on material uncertainty are inadequate, to express an opinion withexceptive items on the financial statements, etc. Our conclusions are based on the audit evidence
obtained up to the date of our auditor’s report. However, future events or conditions may cause theentity to cease to continue as a going concern.
Evaluate whether the presentation and disclosure of the financial statements, etc. are in accordancewith accounting principles generally accepted in Japan, the overall presentation, structure and content
of the financial statements, etc. including the disclosures, and whether the financial statements, etc.
represent the underlying transactions and events in a manner that achieves fair presentation.
We report to the Company Auditor regarding, among other matters, the planned scope and timing of theaudit and significant audit findings, including any significant deficiencies in internal control that we
identify during our audit process, and other matters required by auditing standards.
Conflict of Interest
Our firm or the engagement partners have no interest in the Company which should be disclosed pursuant
to the provisions of the Certified Public Accountants Act of Japan.

The above represents a translation, for convenience only, of the original report issued in the Japanese
language.

Balance Sheet(As of March 31, 2021)（Thousands of yen）
AssetsLiabilities and net assets( Assets )Current assets:( Liabilities )70,111,009

Current liabilities:

494,292

Cash and deposits

1,220,282

Accounts payable-Other

212,689

Operational investment securities

60,952,387

Income taxes payable

235,611

Operating loans

7,114,384

Provision for bonuses

32,382

Allowance for doubtful accounts△ 563,316

Other

13,608Other

1,387,271

Non-current liabilities:
Bonds
Deffered tax liabilities

Non-current assets:
Property and equipment:

1,665,164

Total liabilities

10,519,485
10,000,000
519,485
11,013,777

92,567 ( Net assets )Buildings

22,775Tools, furniture and fixtures

110,401

Capital stock

32,463,500

Accumulated depreciation△ 40,609

Capital surplus:

32,463,500

Intangible assets:

31,728

Software30,709

Other

1,018

Investments and other assets:
Investments in capital of subsidiaries andassociates
Lease deposits
Other

Retained earnings:

32,463,500△ 5,236,736△ 5,236,736

1,540,869

Retained earnings brought forward△ 5,236,736

1,520,699

Valuation and translation adjustments:

1,102,139

20,151

Valuation difference on available-for-salesecurities

1,102,139

18
30,006

Deferred assets

30,006

Amounts of less than 1 thousand yen are rounded off.

Legal capital surplus

59,690,263

Other retained earnings:

Deferred assets

Total assets

Shareholders' equity:

71,806,180

Total net assets

60,792,403

Total liabilities and net assets

71,806,180

Statement of Operations(From April 1, 2020 to March 31, 2021)（Thousands of yen）
Net sales

719,023

Cost of sales

1,060,971

Gross profit△341,947

Selling, general and administrative expenses

1,109,559

Operating loss

1,451,506

Non-operating income
Interest income

101

Foreign exchange gains

159,402

Miscellaneous income

17

159,521

Non-operating expenses
Interest expenses

1,953Interest on bonds

1,024

Bond issuance cost508

Share issuance costs

92,05095,536

Ordinary loss

1,387,521

Loss before income taxes

1,387,521

Income taxes

1,210

Income taxes - deferred

33,070Net lossAmounts of less than 1 thousand yen are rounded off.

1,421,801

Statement of Changes in Equity(From April 1, 2020 to March 31, 2021)（Thousands of yen）
Valuation andtranslation
adjustments

Shareholders' equity

Capital surplus

Retained earnings
Total net assets
Other retained
earnings

Capital stock

Total shareholders'equityValuation difference
on available-for-salesecurities

Legal capital surplus
Retained earnings
brought forward
19,313,500

19,313,500△ 3,814,934

34,812,065△ 867,550

33,944,515

13,150,000

13,150,000-

26,300,000-

26,300,000

Net loss--△ 1,421,801△ 1,421,801-△ 1,421,801

Net changes of items other than shareholders' equity

-

-

-

-

1,969,689

1,969,689

Total changes of items during period

13,150,000

13,150,000△ 1,421,801

24,878,198

1,969,689

26,847,887

Balance at March 31, 2021

32,463,500

32,463,500△ 5,236,736

59,690,263

1,102,139

60,792,403

Balance at April 1, 2020
Changes of items during period
Issuance of common stock

Amounts of less than 1 thousand yen are rounded off.

Notes to Financial Statements
Amounts of less than 1 thousand yen are rounded off.

1. Significant Accounting Policies(1) Basis and method of valuation of securities① Available-for-sale securities (including operational investment securities)
Securities without market quotations:
Stated at cost determined by the moving-average method② Investments in capital of subsidiaries and associates
Securities without market quotations:
Stated at cost determined by the moving-average method(2) Depreciation method of non-current assets① Property and equipment (excluding leased assets)
Depreciation is provided by the declining-balance method, except for the buildings, building
facilities and structures acquired on or after April 1, 2016, which are depreciated using the straightline method.
The useful lives adopted for major assets are as follows:
Buildings (Building facilities):

8-20 years

Tools, furniture and fixtures:

3-15 years② Intangible assets (excluding leased assets)
Intangible assets are amortized using the straight-line method.
The useful lives adopted for major assets are as follows:
Trademark right:

10 yearsComputer software for internal use:

5 years(3) Amortization method of deferred assets① Share issuance costs are processed as expenses in full amount when incurred.
② Bond issuance costs amortized using the straight-line method over the period up to redemption of thebonds.
(4) Accounting for provisions① Allowance for doubtful accounts

As provisions for losses from trade receivables, loans and other credits, a reserve calculated on thebasis of recoverability for designated claimable assets, including doubtful
debt, are made.
② Provision for bonuses
For payment of employees’ bonuses, provision is provided for the portion of the total anticipatedbonuses that is attributable to the fiscal year.
(5) Accounting for income and expenses
Net sales and cost of sales
Commission income and interest income, etc. are recorded in net sales and valuation loss and provisionof allowance for doubtful accounts, etc. are recorded in cost of sales.
(6) Other significant matters which constitute the basis for preparation of the financial statements
Accounting for consumption taxes
Consumption taxes are excluded from transaction amounts.
2. Changes in Accounting Policies
There are no items to be disclosed.
3. Notes to change in presentation
Adoption of ”Accounting standard for disclosure of accounting estimates”
The Company adopted the “Accounting Standard for Disclosure of Accounting Estimates” (ASBJ
Statement No.31, March 31, 2020) from the fiscal year ended and included “Notes to accounting
estimates” in the notes to the financial statements.
4. Notes for significant accounting estimates
Valuation of operational investment securities, investments in capital of subsidiaries and associates andoperating loans(1) Amounts recorded on the financial statements for the current fiscal year
(Thousands of yen)Book Value
Operational investment securities

60,952,387

Investments in capital of subsidiaries andassociates

1,520,699

Operating loans

7,114,384

Allowance for doubtful accounts△563,316(2) Information on the content of significant accounting estimates for identified items
The company estimates the recoverability of fair value of operational investment securities andinvestments in capital of subsidiaries and associates, and recovery amount in operating loan in
the case of significant decline in those substantial value due to the financial condition of theinvestee, recent business condition or business plan which reflects it.
The estimate may be affected by future unpredictable changes in economic condition, etc. and it
may have a significant impact on the financial statements when revise is required in the businessplan of the investee.
5. Notes to balance sheet
Pledged assets
Assets below are pledged as collateral(Thousands of yen)Book Value
Operational investment securities (*1)

4,982,400(*1) Share of ORIENT LINK PTE.LTD. is pledged as collateral for its borrowing of the company.
6. Notes to statement of operations
There are no items to be disclosed.
7. Notes to statement of changes in equity
Class and number of shares at the end of the fiscal year:
Common stock

1,298,540 shares8. Notes to taxes effect accounting
Main sources of deferred tax assets:
Deferred tax assets:
Accrued enterprise taxes

71,733 thousand yen

Allowance for doubtful accounts

172,487 thousand yen

Provision for bonuses

9,915 thousand yen

Loss carryforwards

1,362,753 thousand yen

Other3,404 thousand yen

Subtotal

1,620,332 thousand yen

Valuation allowance for net operating
losses carryforward△ 1,362,753 thousand yen

Valuation allowance for total deductible
temporary difference, etc.

△ 257,579 thousand yen

Subtotal of valuation allowance△ 1,620,332 thousand yen

Total

－

thousand yen

Deferred tax liabilities:
Operational investment securities

486,415 thousand yen

Operating loans

33,070 thousand yen

Total

519,485 thousand yen

9. Notes to financial instruments(1) States of financial instruments① Management policy on financial instruments
The Company conducts investment activities based on the standards stipulated in the Act on Fund
Corporation for the Overseas Development of Japan’s ICT and Postal Services. To conduct investment
activities, the Company raises the necessary funds by equity capital and issuance of GovernmentGuaranteed Bonds, etc.
Regarding fund management, the Company invests only in short-term deposits and investment
securities (certificates of deposit) to secure liquidity and safety of funds.
② Features and risks of financial instruments
Operating loans are exposed to customer credit risk.
Operational investment securities are mainly unlisted stocks and are exposed to credit risk of theinvestees.
Operating loans, operational investment securities and investment in capital of subsidiaries andassociates which are denominated in foreign currencies are exposed to the risk of exchange
fluctuations.
③ Risk management of financial instrumentsⅰ) Management of credit risk
With regard to operating loans, the Company timely and regularly monitors the business conditions of
the investees and seeks to promptly identify and reduce concerns over the collection due to thedeterioration in their financial positions, etc.
With regard to operational investment securities, the Company timely and regularly monitors thebusiness conditions of the investees and makes efforts to promptly identify deterioration of theirfinancial conditions and deviation from their business plan, etc.
ⅱ) Management of liquidity risk relating to financing
The Company controls liquidity risks by monitoring deposits and payments, and preparing thestatement of cash positions regularly.
ⅲ) Management of exchange fluctuation risk to operating loans, operational investment securities
and investment in capital of subsidiaries and associates which are denominated in foreign currencies.
The Company controls exchange fluctuation risks regarding operating loans, operational investment
securities and investment in capital of subsidiaries and associates which are denominated in foreign
currencies by continuously monitoring exchange rate fluctuations.
④ Supplementary explanation regarding the fair value of financial instruments
The fair value of financial instruments is based on market prices or reasonable calculations in the absenceof market prices.
(2) Fair value of financial instruments
Book value, fair value and the difference between them as of March 31, 2021 are as follows. Financial
instruments of which the fair value is extremely difficult to measure are not included below.
(Thousands of yen)Book value

Fair value

Difference

Cash and deposits

1,220,282

1,220,282－

Operating loans

7,114,384

7,114,384－

Allowance fordoubtful△563,316△563,316－

7,771,350

7,771,350

－

Bonds

10,000,000

10,005,372

5,372

Total liabilities

10,000,000

10,005,372

5,372

accounts (*1)
Total assets(*1) Allowance for doubtful accounts taken for operating loans is subtracted.

(Note 1) Fair value measurement of financial instruments① Cash and deposits:
The book value approximates fair value due to the short term settlements.
② Operating loans
The fair value of operating loans is calculated by discounting the sum of its principal and interest
at an interest rate at which a similar new loan transaction is assumed to be made.
③ Bonds
The Fair values of bonds are calculated by the present value based on the sum of principal andinterest as discounted by the interest rate assumed when new similar straight bonds are issued.
(Note 2) Financial instruments of which the fair value is extremely difficult to measure are as follows:(Thousands of yen)Book value
Operational investment securities

60,952,387

Investments in capital of subsidiaries andassociates

1,520,699(Note 3) Future redemption of financial assets with maturities are as follows:(Thousands of yen)

Within one year
Cash and deposits

1,220,282

Operating loans

553,600

Due after one
year
through fiveyears－
3,022,845

Due after fiveyears
through ten
years－
1,312,208

Due after ten
years
－
－

Receivables etc. deem to be uncollectible are not included in a redemption amount since it isdifficult to know an exact repayment date.

(Note 4) The amounts of repayment after the day of settlement of bonds are as follows:(Thousands of yen)

Within one year
Bonds

－

Due after one
year
through fiveyears－

Due after fiveyears
through ten
years
10,000,000

Due after ten
years－

10. Notes to related party transactions
The Company directors and principal shareholders, etc.
(Thousands of yen)
Attribution

Name

Percentage

Relationshipof votingNature ofTransaction

Accounting

Year-endtransactions

amountsclassification

balance

26,300,000－－

rights ,etc.
Principal

Minister of

Owned

Investments

Investments

shareholder

Finance

directly

in capitalin capital

96..33%(Note)

Business conditions and policy for determining the business conditions:(Note) Minister of Finance acquired shares issued by the Company in the amount of ¥50 thousand pershare.
11. Notes to per share information
Net assets per share¥46,815.96

Net loss per share¥1,611.90(Note1)
Although there are potentially dilutive shares, diluted net loss per shar is not shown since it is net loss per
share.
(Note2)The basis for calculation of net loss per share is as follows:
Net lossAmount not attributable to ordinary shareholders
Net loss relating to common stock
Average number of shares of common stock during the period
12. Notes to significant subsequent events

1,421,801 thousand yen－
1,421,801 thousand yen
882,063 shares

There are no items to be disclosed.