Final Report Chapter 8 Project Implementation Plan The figure of around 55% found in Net Profit Margin can be considered the result of MPT being a public corporation under the direct control of MCIT and required to pay a certain amount of money in addition to the relevant taxes. To determine whether the rate of about 55% is reasonable or not, it is necessary to make an evaluation from multiple viewpoints, including the attributes of subscribers, the propriety of pricing and its relationship with the phone penetration rate. It can be said that the rate is apparently produced with no consideration given to market demand, considering that Myanmar has had a monopolized telecommunication sector for a long time; that with a phone penetration rate as low as 10% the country has a large-scale hidden demand; that sufficient investment has not been made in rural areas; that most subscribers are affluent; that overseas grant aid from China, etc., is used even for investment in the 3 metro cities; and that private companies are slow to enter into the market. Both Total Assets Turnover and Equity Multiplier have been within a normal range during the evaluation period. The SGR value which we wanted to confirm was at a rate of over 40% during the evaluation period. Calculation of year-on-year growth of Sales (Total Income), Net Profit, Total Assets and Equity confirmed that the largest growth rate recorded for these elements was at just the same rate as the SGR. This indicates that MPT almost reached the limit of its ability to operate with its own funds only, and that in order to respond to the expected growth of the telecommunications sector, MPT needs to raise funds externally; for example, it should make use of ODA, an increase in capital to be made by the Myanmar government, PPP (Public-Private Partnership), etc. Next, the Liquidity Rate shows that the short-term repayment capability has improved from 144% (2009/10) to 269% (2011/12). From the Balance Sheet provided by MPT, it is apparent that Sundry Debtors increased by 29%, while Sundry Creditors decreased by 29%. In general, it can be said that the financial condition of MPT is fairly sound. The management at MPT perhaps thinks that it would be best for them to maintain the status quo. The new subscribers who must be acquired so that investment in rural areas can be increased and the phone penetration rate can reach 80% possess different attributes from those of existing subscribers. It is expected that MPT’s financial condition will deteriorate from its current peak level. 8-6