Annual Report 2004 [PDF/1.1MB]

The effective tax rate reflected in the consolidated statement of operations for the year ended March 31, 2003 differs from the
statutory tax rate for the following reasons:
Statutory tax rate
Valuation allowance
Elimination of dividend income
Equity in earnings of unconsolidated subsidiaries and affiliates
Permanently non-deductible expenses
Other
Effective tax rate
2003
42.0 %
(21.4)
10.3
(8.1)
6.9
(3.4)
26.3 %
The corresponding information for the year ended March 31, 2004 has been omitted because a loss before income taxes and
minority interests was recorded.
In accordance with a law on amendments to local tax laws, etc. announced on March 31, 2003, the Company and its domestic
consolidated subsidiaries applied a statutory tax rate of 41.0% to the calculation of deferred tax assets and liabilities at March
31, 2003, which are expected to be reversed on April 1, 2004 and thereafter. The effect of this change in the statutory tax
rate applied was to decrease deferred tax assets, net of deferred tax liabilities at March 31, 2003 by ¥241 million and to increase
income taxes deferred for the year ended March 31, 2003 and unrealized holding gain on securities at March 31, 2003
by ¥229 million and ¥11 million, respectively.
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