FINANCIAL SECTION

(11) Stockholders’ Equity
At 31st March, 2001 and 2000, approximately 50 and 52 percent,
respectively, of the outstanding capital stock of the Company was
owned by Hitachi, Ltd.
The Commercial Code of Japan provides that an amount equal to
at least 10 percent of any cash payments out of retained earnings be
appropriated as a legal reserve until such reserve equals 25 percent
of stated capital. This reserve may be transferred to the common stock
account by resolution of the Board of Directors or used to reduce a
deficit by resolution of the stockholders, but is not available for payments
of dividends.
The Board of Directors, with subsequent approval of the stockholders,
has made annual appropriations of retained earnings for
various purposes, the accumulated balance of which is
designated as “voluntary reserve” and is included in retained
earnings in the accompanying consolidated statements of stockholders’
equity. Any disposition of such appropriations shall be
at the discretion of the Board of Directors and stockholders.
The accompanying financial statements do not include any
provision for the dividend of ¥18 ($0.15) per share aggregating
¥2,415 million ($19,476 thousand), or for related appropriations for
directors’ bonuses by the Company. The latter amounted to ¥150
million ($1,210 thousand). Also not included was an appropriation of
¥64 million ($516 thousand) for directors’ bonuses by its subsidiaries.
These appropriations received approval at the subsequent stockholders’
meetings held in respect of the year ended 31st March, 2001.
(12) Other Expenses
A provision for losses on disposal of vehicles lease in the amount of ¥818 million ($6,597 thousand) was included in “Other expenses” for
the year ended 31st March, 2001.
(13) Related Parties
Receivables from, payables to and transaction with the parent company at 31st March, 2001 and 2000, and for the years then
ended were as follows:
Japanese yen
(millions)
U.S. dollars
(thousands)
2001 2000 2001 2000
Receivables — current . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥ 6,861 ¥ 1,290 $ 55,331 $ 10,403
Receivables — non-current . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 511 1 4,121 8
Payables — current . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21,531 9,753 173,637 78,653
Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37,008 4,583 298,452 36,960
Purchases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 281,819 332,670 2,272,734 2,682,823
(14) Consolidated Statements of Cash Flows — Supplementary Information
For the purpose of the statements of cash flows, the Company
considers all time deposits with original maturities of 3 months or
less, which can be withdrawn at the face amount at any time without
any penalty, to be cash equivalents.
Annual Report 2001
Hitachi Capital Corporation
37