Annual Report 2004 [PDF/1.1MB]

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8. CONTINGENT LIABILITIES Contingent liabilities at March 31, 2004 were as follows: Trade notes receivable discounted with banks and endorsed Guarantees of loans to an affiliate, third parties and employees Total Millions of yen ¥ 3,286 3,496 ¥ 6,782 Thousands of U.S. dollars $ 31,091 33,078 $ 64,169 9. SHAREHOLDERS' EQUITY The Commercial Code of Japan provides that an amount equivalent to at least 10% of cash dividends and bonuses paid to directors and statutory auditors, and exactly 10% of interim cash dividends paid be appropriated to the legal reserve until the sum of additional paid-in capital and the legal reserve equals 25% of share capital. The legal reserve and additional paid-in capital may be used to eliminate or reduce a deficit by resolution of the shareholders or may be capitalized by resolution of the Board of Directors. The Code also stipulates that, to the extent that the sum of the additional paid-in capital account and the legal reserve exceeds 25% of share capital, the amount of any such excess is available for appropriation by resolution of the shareholders. Additional paid-in capital is included in capital surplus in the accompanying consolidated balance sheets and statements of shareholders' equity. The Company's legal reserve amounted to nil as of March 31, 2004 and 2003. On March 19, 2004, the Company issued 60,000,000 shares of preferred stock at a price of ¥500 per share, for gross proceeds of ¥30,000 million ($283,849 thousand), of which ¥15,000 million ($141,924 thousand) was recorded as additional paid-in capital. This preferred stock is noncumulative and nonparticipating for dividend payment. Shareholders of this preferred stock are not entitled to vote at a general meeting of the shareholders and cannot convert their preferred stock to common stock. The Company may purchase these and retire them out of earnings available for distribution to the shareholders. 10. LEASE TRANSACTIONS Finance leases other than those which transfer ownership (1) As lessee Total lease payments under finance leases other than those which transfer ownership to the lessee were ¥657 million ($6,216 thousand) and ¥228 million for the years ended March 31, 2004 and 2003, respectively. Pro forma information on leased property such as the acquisition cost and accumulated depreciation at March 31, 2004 and 2003 and depreciation expense for the years then ended on an "as-if-capitalized" basis were as follows: Millions of yen 2004 2003 Thousands of U.S. dollars 2004 Acquisition cost Equipment and fixtures ¥ 3,209 ¥ 2,768 $ 30,363 Others 1,890 224 17,882 Less accumulated depreciation (1,371) (669) (12,972) ¥ 3,728 ¥ 2,323 $ 35,273 Depreciation expense ¥ 657 ¥ 228 $ 6,216 49
Future minimum lease payments as of March 31, 2004 were as follows: Within one year More than one year Total Millions of yen ¥ 698 3,030 ¥ 3,728 Thousands of U.S. dollars $ 6,604 28,669 $ 35,273 The interest portion is included in acquisition costs and future minimum lease payments in the above tables. Depreciation expense is calculated by the straight-line method over the respective lease periods. (2) As lessor Total lease receipts under finance leases totaled ¥732 million ($6,926 thousand) and ¥3,158 million for the years ended March 31, 2004 and 2003, respectively. Information on leased property such as acquisition costs and accumulated depreciation at March 31, 2004 and 2003 and depreciation expense for the year then ended was summarized as follows: Millions of yen 2004 2003 Thousands of U.S. dollars 2004 Acquisition costs: Equipment and fixtures ¥ ¥ 3,933 $ Others 2,320 Less accumulated depreciation (2,692) ¥ ¥ 3,561 $ Depreciation expense ¥ 639 ¥ 2,685 $ 6,046 The Company and its consolidated subsidiaries leased no property to lessees at March 31, 2004. Operating leases (1) As lessee As lessee under non-cancelable operating leases, future minimum lease payments at March 31, 2004 were as follows: Within one year More than one year Total Millions of yen ¥ 62 106 ¥ 168 Thousands of U.S. dollars $ 587 1,003 $ 1,590 (2) As lessor As lessor under non-cancelable operating leases, future minimum lease receipts at March 31, 2004 were as follows: Within one year More than one year Total Millions of yen ¥ 72 170 ¥ 242 Thousands of U.S. dollars $ 681 1,608 $ 2,289 50
Page 1 and 2: KAWASHO CORPORATION ANNUAL REPORT 2
Page 3 and 4: FINANCIAL HIGHLIGHTS Kawasho Corpor
Page 5 and 6: crease of 2,057 million. Recurring
Page 7 and 8: CORPORATE TOPICS August 2, 2004 Est
Page 9 and 10: Director : Tsutomu Yajima (currentl
Page 11 and 12: 2. Consolidation and reorganization
Page 13 and 14: REVIEWS OF OPERATIONS DOMESTIC STEE
Page 15 and 16: Domestic Steel Overseas Steel Terre
Page 31 and 32: CORPORATE OFFICER (As of June 18, 2
Page 33 and 34: CONSOLIDATED BALANCE SHEETS Kawasho
Page 35 and 36: CONSOLIDATED STATEMENTS OF OPERATIO
Page 37 and 38: CONSOLIDATED STATEMENTS OF CASH FLO
Page 39 and 40: NOTES TO CONSOLIDATED FINANCIAL STA
Page 41 and 42: j. Leases The Companies lease certa
Page 43 and 44: 4. SHORT-TERM BORROWINGS AND LONG-T
Page 45 and 46: 6. ACCRUED RETIREMENT BENEFITS The
Page 47: The effective tax rate reflected in
Page 51 and 52: (2) Commodities Millions of yen 200
Page 53 and 54: Thousands of U.S. dollars Steel Raw
Page 55 and 56: 15. LITIGATION The "Royal Palm Reso
Page 58 and 59: World Network WORLD NETWORK - 60 MA
Page 60 and 61: Singapore SINGAPORE BRANCH 3 Shento
Page 62: COMPANY DATA Name KAWASHO CORPORATI

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