Independent Auditor’s Report
20 th May 2024
To the Board of Directors
Toyota Tsusho Machinery Corporation
PwC Japan LLC
Nagoya Office
Designated Limited Liability Partner
Executive Partner
Certified Public Accountant
Audit Opinion
Our auditing firm has conducted an audit of the financial statements of Toyotsu Machinery
Co., Ltd. for the 47th fiscal year, covering the period from April 1, 2023, to March 31, 2024.
The financial statements include the balance sheet, income statement, s tatement of changes
in shareholders' equity, and individual notes, along with their accompanying detailed
statements (hereinafter referred to as "financial statements, etc.").
We believe that the aforementioned financial statements, etc., are presented fairly in all
material respects, in accordance with generally accepted accounting principles in Japan, and
accurately reflect the financial position and performance for the releva nt period.
Basis for Audit Opinion
We conducted our audit in accordance with generally accepted auditing standards in Japan.
Our responsibilities under these standards are described in the section titled "Auditor's
Responsibilities in an Audit of Financial Statements, etc." We are independe nt of the company
in accordance with the ethical requirements relevant to our audit, and we have fulfilled our
other ethical responsibilities as auditors. We believe that we have obtained sufficient and
appropriate audit evidence to provide a basis for our opinion.
Other Information
The other information consists of the business report and its accompanying detailed
statements. The responsibility of management is to prepare and disclose the other
information. The responsibility of the statutory auditors is to oversee the execution of
d irectors' duties in the preparation and operation of the reporting process for the other
information.
Our audit opinion on the financial statements, etc., does not cover the other information, and
we do not express any opinion on the other information. Our responsibility in relation to the
audit of the financial statements, etc., is to read the other infor mation and, in doing so,
consider whether there are material inconsistencies between the other information and the
financial statements, etc., or our knowledge obtained during the audit. We are required to
report if we conclude that there is a material mis statement in the other information based on
our work performed.
We have no matters to report regarding the other information.
Responsibilities of Management and Statutory Auditors for the Financial Statements, etc.
Management is responsible for the preparation and fair presentation of the financial
statements, etc., in accordance with generally accepted accounting principles in Japan. This
includes establishing and maintaining internal controls that management deems necessary to
ensure that the financial statements, etc., are free from material misstatement due to fraud or
error.
In preparing the financial statements, management is responsible for assessing the
appropriateness of the use of the going concern basis of accounting and disclosing, as
applicable, matters related to going concern in accordance with generally accepted acc ounting
principles in Japan.
The responsibility of the statutory auditors is to oversee the execution of directors' duties in
the preparation and operation of the financial reporting process.
Auditor's Responsibilities in an Audit of Financial Statements, etc.
The auditor's responsibility is to obtain reasonable assurance about whether the financial
statements, etc., as a whole are free from material misstatement, whether due to fraud or error,
and to express an opinion on the financial statements, etc., based o n the audit. Misstatements
may arise from fraud or error and are considered material if, individually or in the aggregate,
they could reasonably be expected to influence the economic decisions of users taken on the
basis of the financial statements, etc.
In conducting the audit, the auditor is required to exercise professional judgment and
maintain professional skepticism throughout the audit process in accordance with generally
accepted auditing standards in Japan. The auditor will:
⚫ Identify and assess the risks of material misstatement due to fraud or error, and design
and perform audit procedures responsive to those risks. The selection and application of
audit procedures are based on the auditor's judgment. Furthermore, the auditor will
obtain sufficient and appropriate audit evidence to provide a basis for the opinion.
⚫ Although the purpose of the audit of the financial statements, etc., is not to express an
opinion on the effectiveness of internal controls, the audit firm will consider relevant
internal controls in designing appropriate audit procedures in response to th e assessed
risks.
⚫ Evaluate the appropriateness of accounting policies adopted by management and the
reasonableness of accounting estimates and related disclosures made by management.
⚫ Conclude whether it is appropriate for management to prepare the financial statements,
etc., on a going concern basis, and whether there are material uncertainties related to
events or conditions that may cast significant doubt on the entity's ability to c ontinue as
a going concern. If there are significant uncertainties regarding the going concern
assumption, the auditor is required to draw attention in the audit report to the related
disclosures in the financial statements, etc., or, if the disclosures ar e inadequate, to
modify the opinion on the financial statements, etc. The auditor's conclusions are based
on audit evidence obtained up to the date of the audit report, but future events or
conditions may cause the entity to cease to continue as a going co ncern.
⚫ Evaluate whether the financial statements, etc., are presented in accordance with
generally accepted accounting principles in Japan, including the presentation, structure,
and content of the financial statements, etc., and whether they appropriately reflec t the
underlying transactions and accounting events.
The auditor will report to the statutory auditors on the planned scope and timing of the audit,
significant findings from the audit, including significant deficiencies in internal control
identified during the audit, and other matters required by auditing standards.
Relationships
There are no relationships that need to be disclosed between the company and our auditing
firm or its partners, as required by the Certified Public Accountants Act.
Financial Statements for the 47th Term
From April 1, 2023 to March 31, 2024
Toyotsu Machinery Corporation
(Unit : Round down to the nearest thousand yen)
Accounts Title Account Balance Accounts Title Account Balance
(Assets) (Liabilities)
Current Assets: 66,285,231 Current Liabilities: 49,782,364
Cash and Cash Equivalents 4,575 Notes payable-trade 593,373
Trade notes receivable 124,705 Electronic recorded debt 14,332,080
Electronically recorded debt 2,834,145 Accounts payable-trade 25,442,398
Accounts Receivable-trade 50,652,179 Short-term borrowings 21,618
Merchandise 7,750,522 Lease Liability 1,110
Advance Payments 1,959,663 Accounts payable-other 1,433,477
Prepaid Expenses 328,059 IncomeTaxesPayable 2,155,210
Accounts Receivable-other 1,512,451 Accrued expenses 159,247
Short Terms Claim 2,062 Advances Received 4,060,206
Consumption taxes receivable 1,199,332 Deposits received 71,342
Allowance for doubtful accounts △ 82,466 Unearned Revenue 2,089
Derivative Liabilities 517,776
Fixed Assets: 2,207,173 Allowance for employees' bonuses 965,133
Property, plant and equipment 465,294 Allowance for bonuses for directors and company auditors 13,484
Buildings 379,136 Others 13,815
Structures 5,007
Machinery and equipment 2,120 Non-current liabilities 1,515,321
Vehicles & delivery equipmen 0 Lease Liabilities 3,607
Furniture & fixtures 15,663 Provision for restoration costs 100,539
Land 59,076 Provision for retirement benefits 1,370,802
Lease Asset 4,289 Reserve for directors' retirement benefits 40,372
Intangible assets 218,500 Total Current Liabilities 51,297,686
Software 218,500 (Net assets)
Others 0 Shareholders Equity Abstract 17,317,235
Investments and other assets 1,523,379 Share capital 325,000
Investment securities 92,823 Capital surplus 387,196
Shares of subsidiaries and affiliates 15,916 Legal capital surplus 64,000
Investments in capital of subsidiaries and associates 29,170 Other capital surplus 323,196
Claims provable in bankruptcy, claims provable in rehabilitation and other 6,775 Retained earnings 16,605,039
Golf club membership 38,950 Legal retained earnings 47,780
Long-term guarantee 23,467 Other retained earnings 16,557,259
Prepaid pension cost, 377,498 General reserve 2,416,644
Deferred tax assets 966,618 Retained earnings brought forward 14,140,615
Derivatives 6,815 Valuation and translation adjustments △ 122,516
Others 718 Valuation difference on available-for-sale securities 14,207
Allowance for doubtful accounts △ 35,375 Deferred gains or losses on hedges △ 136,724
Total Net assets 17,194,718
Total Assets 68,492,404 Total Cuurent Liabilities & Net assets 68,492,404
Financial Statements for the 47th Term
1. Balance Sheet
(As of March 31, 2024)
- 2 -
(Unit : Round down to the nearest thousand yen)
Accounts Title
Sales
Sales 201,780,909
Non-operating income 1,859,450 203,640,360
Cost of Sales 182,624,413
Gross profit 21,015,946
Selling, general and administrative expenses 9,032,922
Operating income 11,983,023
Non-operating income
Interest income 903
Dividend income 642,620
Others 89,573 733,097
Non-operating expenses
Interest expense 12,318
Loss on foreign exchange 962,551
Others 4,095 978,965
Ordinary income 11,737,156
Special income
Gain on sale of property, plant and equipment and intangible assets 205 205
Special expenses
Loss on disposal of property, plant and equipment and intangible assets 12,163 12,163
Income before taxes 11,725,198
Income taxes-current 3,522,262
Income taxes-deferred △ 71,827
Net income 8,274,763
2. Profit and Loss Statement
(From April 1, 2023 to March 31, 2024)
Account Balance
- 3 -
(Unit : Round down to the nearest thousand yen)
General
reserve
Retained
earnings
At April 1, 2023 325,000 6,400 323,196 387,196 47,780 2,416,644 8,201,064 10,665,488 11,377,684
Profit, representing total
comprehensive income,for the
year
Distribution of dividends △ 2,335,213 △ 2,335,213 △ 2,335,213
Net Income 8,274,763 8,274,763 8,274,763
Amount of change for the
current period (net) in
items other than
shareholders' equity
Total Profit, representing
total comprehensive
income,for the year
5,939,550 5,939,550 5,939,550
At March 31, 2024 325,000 64,000 323,196 387,196 47,780 2,416,644 14,140,615 16,605,039 17,317,235
At April 1, 2023 6,435 715 7,151 11,384,835
Profit, representing total
comprehensive income,for the
year
Distribution of dividends △ 2,335,213
Net Income 8,274,763
Amount of change for the
current period (net) in
items other than
shareholders' equity
7,772 △ 137,440 △ 129,667 △ 129,667
Total Profit, representing
total comprehensive
income,for the year
7,772 △ 137,440 △ 129,667 5,809,833
At March 31, 2024 14,207 △ 136,724 △ 122,516 17,194,718
- 4 -
Capital surplus Retained earnings
Valuation and translation adjustments
Valuation
difference on
available-for-
sale securities
Deferred
gains or
losses on
hedges
Total
Valuation and
translation
adjustments
Total Net
Asset
Total Capital
surplus
Legal retained
earnings
Other Retained earnings Total Retained
earnings
Total
Shareholders'
equity
3. Statement of changes in equity
(From April 1, 2023 to March 31, 2024)
Shareholders' equity
Capital Stock Legal capital
surplus
Other retained
earnings