Balance Sheet As of 31 March 2005 (Unit in thousand yen) Accounts

Transcription

1 JTB Business Travel Solutions, Inc. Balance Sheet As of 31 March 2005 (Unit in thousand yen) Accounts Amount Accounts Amount Assets Liabilities Current Assets 7,458,154 Current Liabilities 6,554,590 Cash on hand & in banks 285,369 Trade account payable 3,255,289 Trade account receivable 6,832,950 Short-term borrowings 1,800,000 Non trade account receivable 174 Payable 284,752 Prepayment for trading purpose 119,363 Accrued expenses 296,871 Prepayment expenses 21,446 Accrued income tax 326,875 Prepayment 35,641 Consumption tax payable 105,516 Other current assets 2,860 Received in advance 84,269 Deferred income tax (current) 167,597 Deposit received 401,016 Allowance for bad debts (7,249) Fixed assets 582,654 Long-term Liabilities 135,230 Tangible Assets 127,091 Accrued retirement allowance 38,380 Structures 36,689 Accrued retirement allowance for director 4,170 Equipment and furniture 90,401 Long-term deposit 8,977 Long-term payable 25,720 Intangible Assets 49,804 Deposit for guarantee 57,982 Premium on telephone line 110 Software 49,694 Total Liabilities 6,689,821 Investments and other assets 405,758 Shareholders' Equity Investment securities 2,328 Common Stock 490,000 Long-term Deposit 326,933 Earning Surplus 860,901 Long-term Account Receivable 9,037 Special reserved 3,392 Deferred income tax (Long-term) 76,468 Special depreciation reserve 3,392 Other asset 28 Retained earnings 857,508 Allowance for bad debt (9,037) Unrealized gain on revaluation securities 86 Total shareholders' Equity 1,350,987 Total Assets 8,040,809 Total Liabilities and Shareholders' Equity 8,040,809

2 JTB Business Travel Solutions, Inc. Profit and Loss Statement From 1/4/2004 to 31/3/2005 Accounts Ordinary Profit Operating Profit Net Sales Sales, General & Administrative Expenses Operating profit (Unit in thousand yen) Amount 5,057,354 4,202, ,706 Non-operating Items Non-operating Revenue Interest received Dividend received 2 28 Foreign currency exchange gain 1,605 Consignment revenue 4,458 Insurance reimbursement Miscellaneous revenue 1,002 2,477 9,573 Non-operating Loss Interest paid Miscellaneous loss Ordinary profit Extraordinary Items Loss on reevaluate of premium telephone Profit before tax Income tax Income tax deferred Net Income Surplus brought previous year Retained earnings 20,480 4,353 24, ,446 1,517 1, , ,963 (88,718) 475, , ,508

3 Notes to the Financial Statements [Important accounting policies] 1. Evaluation of investment securities Investment securities are evaluated at the Tokyo stock exchange market value at the end of the current term. 2. Depreciation of fixed assets Tangib le fixed assets are depreciated using the declining-balance method. The useful life and residual value for main tangible fixed assets are Structure two to eighteen years Equipment two to fifteen years Intangible fixed assets For computer software used internal, the straight-line method based on the expected useful life for internal use of such software (five years) is used. 3. Standard for reporting allowance and reserves 1 Allowance for bad debts In order to provide for loss from bad debts, amounts that are expected to become irrecoverable are reported as allowance for doubtful accounts using the actual bad debt ratio for general claims and examining the recoverability of individual special claims, including ones that are feared to become irrecoverable. Not regardless with the duration of outstanding, doubt debts should be estimated to be possibility of the collection money for the debts by individual. Allowance for bad debts also were calculated 50% of the amount to which were outstanding for 6 months or more. And 100% of the amount to which were outstanding for one year or more. 2 Allowance for retirement In order to provide for payment of employee retirement benefits, retirement benefit liabilities that are expected to arise at the end of the current term are reported as reserve for retirement benefits. 3 Allowance for director s retirement In order to provide for payment of directors retirement allowance, amount that is calculated according to the company rule is reported as reserve for directors retirement allowance. 4. Accounting of consumption tax Consumption tax is accounted for using the tax exclusion method. 5. Using unit showing on financial statement Figures on the financial statement are shown in thousand as an unit and are made a round-down at hundred.

4 [Notes to balance sheet] 1. Debts and credits with controlling stockholders Short-term financial credits Long-term financial credits Short-term financial debts Long-term financial debts 80,747 thousand yen 19,633 thousand yen 687,649 thousand yen 23,443 thousand yen 2. Total depreciation of tangible fixed assets: 194,908 thousand yen 3. Increasing net capital on the balance sheet for adding season price on the assets is 86 (eighty six) thousand yen in accordance with the adoption of enforcement Commercial Low article number hundred and twenty four on column three. [Notes to profit & loss statement] 1. Transactions with controlling shareholder: Sales: Purchases (expenditure): Non operating transactions: 26,825 thousand yen 347,227 thousand yen Nil 2. Disposal of fixed assets The article of disposal of fixed assets in this fiscal year is revaluation for the telephone premium to meet with market value. It deduc ted down to 5,000 yen per 1 line. 3. Net income per one stock 48, yen The calculation for net income per one stock is based on as follows. Net income on profit and loss statement The amount for which is not belong to common stock Net income belongs to common stock Average number of common stock in this fiscal year 475,682 thousand yen Nil 475,682 thousand yen 9,800 common stocks

5 [Notes to retirement benefits] 1. Summary of retirement benefit system adopted: JTB-CWT uses the defined benefit retirement pay system for employees. As for personnel on loan from JTB, JTB-CWT bears only retirement benefits hence there is no reserve balance. Special retirement and other allowances occasionally are paid when employees retire. 2. Retirement liabilities Retirement liabilities: Reserve for retirement liabilities: 38,380 thousand yen 38,380 thousand yen 3. Breakdown of retirement expenses Retirement expenses: 54,502 thousand yen (1) Expenses associated with employee services: 23,748 thousand yen (2) Cost sharing of retirement costs for staff on loan from JTB: 30,344 thousand yen

6 [Notes to deferred tax] 1. Breakdown of major reasons deferred tax assets and deferred tax liabilities arise: (Unit: thousand yen) Deferred tax assets (current) Accrued bonus 83,683 Trade account receivable 28,938 Account payable 27,000 Unpaid enterprise tax 18,604 Received in advance 3,546 Unpaid office-premises tax 2,961 Allowance for bad debts 2,863 Deferred tax assets (current) total 167,597 Deferred tax liability (Current) Deferred tax liability (current) total -- Net amount of deferred tax assets (current) 167,597 Deferred tax assets (fixed) Prepayment 42,100 Allowance for retirement 15,049 Long term payable 10,159 Allowance for bad debts 3,569 Long term deposit 3,546 Others 3,790 Deferred tax assets (fixed) total 78,215 Deferred tax liabilities (fixed) Evaluation for securities 58 Special reserve for redemption 1,688 Deferred tax liabilities (fixed) total 1,747 Net amount of deferred tax assets (fixed) 76,468

7 2. Breakdown of major items that cause differences between the statutory effective tax rate and the rate for corporate and other taxes that is applicable after the tax benefit accounting is used: Statutory effective tax rate 40.7% (Adjustments) Eternity difference such as company entertainment cost 1.6% Per capita levy of residential tax 0.1% Others 0.8% Actual tax rate after adoption of deferred tax 43.2%