ANNUAL REPORT

The decrease of the unrecognized deferred tax assets from JPY
49,194 million as of March 31, 2008 to JPY 41,799 million as of
March 31, 2009 is mainly due to :
(in JPY millions) 2009
Deductible
temporary
differences
Tax losses
Total
Opening balance 6,554 42,640 49,194
Utilization - (11,168) (11,168)
Additions 4,831 (919) 3,912
Effect of exchange
rates
1,133 1,033 2,166
Recognition (415) (1,890) (2,305)
Closing balance 12,103 29,696 41,799
The decrease of the tax losses carried forward from JPY 146,614
million as of March 31, 2008 to JPY 97,707 million as of March
31, 2009 is mainly due to :
(in JPY millions) 2009
Opening balance 149,614
Effect of exchange rates (2,727)
Tax losses expired during the period (28,345)
Tax losses utilized following debt extinguishment at Metaldyne (28,522)
Legal restructuring at HIT (10,421)
Additions for the period 18,257
Others (149)
Closing balance 97,707
19.4. Tax losses
At March 31, 2009, RHJI and its subsidiaries had net operating
losses in aggregate of approximately JPY 97,707 million, which
are available to be offset against future taxable income. These
losses, if not utilized, will expire as follows :
(in JPY millions) 2009 2008
Less than one year 5,291 28,345
Between one and five years 13,286 18,159
More than five years 79,130 103,110
Total 97,707 149,614
20. INVENTORIES
(in JPY millions) 2009 2008
Gross Allowance Net Gross Allowance Net
Raw materials and consumables 9,582 (50) 9,532 14,613 (6) 14,607
Work in progress 5,898 (864) 5,034 10,146 (883) 9,263
Finished goods 11,504 (358) 11,146 14,039 (173) 13,866
Total 26,984 (1,272) 25,712 38,798 (1,062) 37,736
Inventories are stated net of allowances, which amounted to JPY 1,272 million and JPY 1,062 million at March 31, 2009 and 2008,
respectively.
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