英訳03_トムス株式会社_第33期 事業報告

The 33rd Financial Report March 1, 2012 – February 28, 2013 TOMS CORPORATION Balance sheet (February 28, 2013) Account Amount Account Amount Assets Liabilities Current assets 15,653,094 Current liabilities 1,851,818 Cash and deposits 9,293,605 Notes payable 158,223 Notes receivable 366,492 Accounts payable 489,344 Accounts receivable 1,336,540 Accrued amount payable 236,124 Inventory 4,333,336 Accrued expenses 51,713 Supplies 35,997 Allowance for bonus payable 120,252 Advance payments 114,033 Income taxes payable 751,843 Prepaid expenses 28,083 consumption tax payable 19,643 Deferred tax assets 152,358 Advances by customers 11,974 Advances paid 12,547 Deposit payable 12,698 Temporary payment 10,476 　 　 Allowance for doubtful accounts △30,377 　 　 Noncurrent assets 2,489,002 　 　 　Property, plant and equipment 142,532 Building 121,019 　 　 Construction 465 Noncurrent liabilities 537,526 Vehicles 34 Reserve for retirement benefits 52,452 Tools, furniture & fixtures 21,013 Reserve for retirement benefits for officers 476,435 Intangible assets 193,678 Asset retirement obligation 8,638 Right of trademark 3,671 Total liabilities 2,389,345 Telephone subscription right 3,638 Net assets Software 186,367 Shareholder' equity 15,698,786 Investments and other assets 2,152,791 Capital stock 80,000 Stocks of subsidiaries and affiliates 28,049 Retained earnings 15,618,786 Investments in subsidiaries and affiliates 1,851,379 Legal reserve of retained earnings 20,000 Claims in bankruptcy, reorganization claims 1,701,274 Other retained earnings 15,598,786 Lease and guarantee deposits 110,348 Voluntary reserve 340,000 Deferred tax assets 248,325 　Retained earnings 15,258,786 Others 3,008 Valuation and translation adjustments 53,965 Allowance for investment loss △899,476 Deferred gains or losses on hedges 53,965 Allowance for doubtful accounts △890,117 Total net assets 15,752,751 Total assets 18,142,096 Total liabilities and net assets 18,142,096 Income Statement (March 1, 2012～February 28, 2013) Account Amount Sales revenue 　 15,484,982 Cost of sales 8,604,905 Gross profit 6,880,077 Selling, general and administrative expenses 3,685,481 Operation income 3,194,596 Non-operation income 　 Loss on valuation of derivatives 213,118 Interest and Dividends income 10,749 Foreign exchange losses 92,979 Miscellaneous income 8,731 325,579 Non-operating expense 　 　 Miscellaneous losses 3,804 3,804 Ordinary income 　 3,516,371 Extraordinary income 　 Income of retirement of fixed assets 　 0 　 Gain on sales of investment securities 5,970 5,970 Extraordinary loss 　 Loss on retirement of fixed assets 83,479 Provision of allowance for doubtful accounts 248,960 　 Impairment loss 46,840 Severance pay 116,862 Others 20,048 516,192 Income before income taxes 　 3,006,149 Income taxes deferred 1,473,786 Income interest △78,843 1,394,943 Net income 　 1,611,206 Statements of Shareholders' Equity(March 1, 2012～February 28, 2013) 　 Statement of changes in net assets Capital stock Retained earnings Total shareholders' equity 　 Other retaining earnings 　 Legal capital surplus Voluntary reserve Retained earning brought forward Total retained earnings Balance at the end of previous period 80,000 20,000 340,000 13,663,579 14,023,579 14,103,579 Changes during this period 　 　 　 　 　 　 Dividends from surplus 　 　 　 　△16,000 △16,000 △16,000 Net income 　 　 　 1,611,206 1,611,206 1,611,206 Changes other than shareholders' equity during this period 　 　 　 0 Total change during this period 　0 　0 0　 1,595,206 1,595,206 1,595,206 Balance as of this period 80,000 20,000 340,000 15,258,786 15,618,786 15,698,786 Valuation and translation adjustments 　 Valuation difference on　other securities Deferred gains or losses on hedges Total difference on Valuation and translation adjustments Total net assets 3,018 △21,000 △17,981 14,085,598 　 　 　 　 　 　 　0 △16,000 　 　 　0 1,611,206 △3,018 74,966 71,947 71,947 △3,018 74,966 71,947 1,667,153 0 △53,965 53,965 15,752,751 Explanatory notes (March 1, 2012～February 28, 2013) 1. Explanatory notes regarding significant accounting policies (1) Valuation basis and method for assets ①Valuation basis and method for securities Stocks of subsidiaries ・・・ method of moving average cost Other securities Securities with fair market value・・・ fair market value based on the quoted market price, (The related valuation differences are directly charged to net assets and cost of securities sold is computed by the moving average method.) Other securities with no fair market value・・・method of moving average cost 　 ②Valuation basis and method for derivative Market value method ③Valuation basis and method for inventories Goods・・・method of moving average cost ( Values listed in the balance sheet are calculated on lower cost bases due to decrease in their profit.) Stored goods ・・・method of last purchase cost (Same as above) ④Leases 　　　　 Among the finance lease transitions other than those whose ownership shall be deemed to be transferred to the lessee, the lease transactions whose starting dates are before the beginning of the first year of adoption of "Accounting Standard for Lease Transactions" ASBJ Statement No. 13, subject to the accounting processing in relation to normal leasing procedure. 　⑤Explanatory Hedge accounting 　　　　Hedge accounting 　　　　　Hedge accounting has adopted the deferred hedge accounting. 　　　　The hedging instrument and the hedged item 　　　　　The hedging instrument　　hedged item 　　　　　Exchange forward contract　　　　Foreign currency forecasted transactions 　　　　Hedging policy Hedging policy is intended to hedge the risk of exchange rate fluctuations associated with its business activities. Hedge effectiveness assessment As a rule, comparing the cumulative fluctuations of cash flow or the hedged item with the cumulative fluctuations of cash flow or the hedged instrument during the period from the hedging starts to validity is judged, validity shall be judged based on both above. ⑥Equivalent value of assets and liabilities denominated in foreign currencies to the Japanese currency Receivables and payables denominated in foreign currencies are translated into Japanese yen at year-end spot rate. Translation difference is processed as gain or loss. (2) A method of the depreciation of fixed assets ① Property, plant and equipment・・・ Fixed rate method ② Intangible assets・・・ The company depreciates internal use software using fixed amountmethod over the estimated usable period (5 years). Other intangible assets are depreciated primarily by fixed amount method. (3) Allocation of allowance ① Allowance for doubtful accounts In order to prepare for a loss by bad debt, the company provides general accounts receivable principally for an amount computed based on the historical bad debt ratio and an estimated uncollectible amount for an amount based on an analysis of certain individual accounts. ② Accrued bonuses In order to prepare for the payment of bonuses for employees, accrued bonuses is stated at amount based on projected payment. ③ Reserve for retirement allowance In order to prepare for retirement benefits for employees, the companies provides for shortcut method (voluntary year-end necessary payment). ④ Provision for directors' retirement benefits To provide for the payment of retirement benefits for directors, year-end necessary payment shall be set aside for directors’ retirement benefits ⑤ Allowance for investment loss In order to prepare for the loss due to the decrease in the value of shares in affiliates, and other similar things based on the financial condition of the investee, the company records the amount required. (4) Accounts processing of consumption tax Consumption tax is stated at tax exclusion method. 2. Explanatory notes regarding balance sheet (1) Amounts are rounded down to the nearest thousand yen. (2) Accumulated depreciation of assets itemized for each asset Building  18,158 one thousand yen Structures 24 one thousand yen Motor vehicles and transport equipment 380 one thousand yen Tools, furniture and fixtures 19,313 one thousand yen (3) Monetary assets and liabilities to affiliated companies Short-term monetary receivables 7,581 one thousand yen Long-term monetary receivables 1,590,982 one thousand yen Short-term monetary liabilities 167,618 one thousand yen 3. Explanatory notes regarding income statement (1) Amounts are rounded down to the nearest thousand yen. (2) The total amount of turnover from operating transactions with affiliates and the total turnover from transactions other than operating transactions are listed below; Sales revenues 14,926 one thousand yen Goods purchased 1,207,136 one thousand yen Transactions other than operating transactions 10,293 one thousand yen 4. Explanatory notes regarding statement of changes in net assets (1) Type and number of shares outstanding at the end of the fiscal year is; Common stock   160,000 shares (2) Distribution of surplus dividends of the business during the year is; ① Distributed Dividends Resulted by a general meeting of shareholders on May 30,2012 Amounts of Dividends 16,000 one thousand yen Amounts of Dividends per a stock 100yen The standard date Feb 29,2012 Effective date May 31, 2012 5. Tax effect accounting Items of the main reasons for the accrual of deferred tax assets Deferred tax asset Provision for bonuses allowance 47,992 one thousand yen Accrued enterprise tax 64,422 one thousand yen Accrued rent 441 one thousand yen Accrued office tax 657 one thousand yen Legal welfare expenses 6,176 one thousand yen Loss on valuation of investment securities 30,167 one thousand yen Calculation omission of Inventories 23,566 one thousand yen The provision for employees' retirement benefits 19,465 one thousand yen Provision for directors ' retirement benefits  176,805 one thousand yen Impairment loss 18,196 one thousand yen Subsidiaries 1,664 one thousand yen Allowance for loan losses deductible excess 26,525 one thousand yen Depreciation deductible excess 18,654 one thousand yen Asset retirement obligation 4,482 one thousand yen Total deferred tax assets  439,578 one thousand yen Deferred tax liability Exchange contract △ 35,842 one thousand yen Property, plant and equipment △ 3,052 one thousand yen Total deferred tax liabilities △ 38,894 one thousand yen Net deferred tax assets (liabilities) 400,683 ​​one thousand yen 6. Fixed assets used under lease Class of assets Contents of the assets Motor vehicles and transport equipment Passenger car 24 units 7. Related party transactions Subsidiary Attribute Company name  Address Capital Business Ownership percentage of　the voting rights, etc. Relationship content The contents of the transaction Transaction amount (thousands of yen ) Subject Balance at end of year (thousands of yen ) Interlocking of directors Relationship Subsidiary Retail Net Co., Ltd. Gifu, Gifu Prefecture 25,000 One thousand yen Silk print And processing Product sales Direct 100% - Our company Supplier Sales Purchase Interest income Software 7,491 222,146 1,721 Accounts receivable receivable Advances paid Accounts payable  payables 79 499 50,880 Subsidiary Tomth(shaoxing)Weaving and Dyeing Co., Ltd Shaoxing, Zhejiang, China 16,000 One thousand USD Cut sew Product manufacturing Direct 100% 2 person Our company Supplier Sales Purchase Interest 7,352 925,871 8,571 Accrued income Correction bankruptcy creditors Accounts payable 6,928 1,590,982 112,199 Subsidiary Tomth(shaoxing)Trading Co., Ltd Shaoxing, Zhejiang, China 100 One thousand USD Trading Direct 100% 1 Person Our company Supplier Sales Purchase 82 4,118 Accounts payable Capital stock 4,538 8,192 Subsidiary Tomth(shaoxing)Textile Co., Ltd Shanghai China 500 One thousand USD Trading Direct 100% 1 Person Our company Saler - - Advances paid Capital stock 74 44,235 Notes: 1. Respect of the amount of the above, consumption taxes are not included in the transaction amounts, consumption taxes are included in the year-end balance. Notes: 2. Trade term and decision-making policies of trade term It has been determined by reference to the market price for the sale of our products and the transaction price with other suppliers for the purchase. 8. Per share information Net assets per share 98,454 yen 70 sen Net income per share 10,070 yen 04 sen 9. The other Notes Amounts of Deferred tax liabilities and Deferred tax assets due to the modification of the legal effective tax rate Due to the promulgation of “Act on partial revision of Income Tax Act, etc. for establishing the taxation system that corresponds to the changes in socio-economic structures (Act No. 114 of 2011)” and “Act on Special Measures concerning Assurance of Financial Resources Necessary for policy implementation for reconstruction from The Great East Japan Earthquake (Act No. 117 of 2011) ”, in respect of normal effective statutory tax rate, whose current rate is 42.05%, the temporally deference expected to be reversed during the fiscal year starting at March 1, 2013 to that starting at March 1, 2015 is 39.91%, and the temporally deference expected to be reversed after the fiscal year starting at March 1, 2016 is 37.11%. Due to these changes in taxation rate, the amount of Deferred tax liabilities (after deduction of Deferred tax assets)decreases by17,063 thousand yen, and the amount of income taxes adjustment decreases by 17,063 thousand yen. Business overview (March 1, 2012～February 28, 2013) 1. The item of the statement of our company (1) Main business 　 Our company imports the plain clothes so called “Muji body” from China, stockpile them in Japan and deliver them with prints that customers want to sales promotion markets and apparel markets in a short term. (2) Main branches /factories/statement of workers ①Head office　3-16-3cyoume Higashi, Shibuya-ku, Tokyo ②Branch Name Address Osaka Branch Nakanoshima, Nishi-ku, Osaka City Hiroshima Branch Noboricho, Naka-ku, Hiroshima City Fukuoka Branch Nishinakasu, Chuou-ku, Fukuoka City Nagoya Branch Nishiki, Naka-ku, Nagoya City Sendai Branch Honmachi, Aoba-ku, Sendai City Saitama Branch Sakurashinmachi, Omiya-ku, Saitama City Okinawa Branch Mekaru, Naha City, Sapporo Branch Kitaitijyounishi, Cyuou-ku, Sapporo City Gifu Operation Group Ryutsu center Yanaiducyou, Gifu City, Gifu Prefecture Shanghai Branch Yan an west road, Changning-qu, Shanghai City Qingdao Branch Nanjing road, Qingdao City 　 Number of employees Compared to previous period Average age Average years of service Man 98 people 2 people age 33.96 7.39 years Woman 57 people 4 people age 32.46 6.87 years Total 155 people 6 people age 33.01 6.32 years Notes: not include part time workers etc (3) Change in the profit and loss, and property Division/Period The 30th The 31st The 32nd The 33th (2010 fiscal year) (2011 fiscal year) (2012 fiscal year) (2013 fiscal year) Net sales 13,328,434 3,112,443 15,140,591 15,484,982 (Thousands of yen) Ordinary income 3,283,488 457,096 2,680,799 3,516,371 (Thousands of yen) Net income 1,772,685 88,592 1,453,045 1,611,206 (Thousands of yen) Net income per a share (Yen) 11,079.29 553.70 9,081.53 10,070.04 Total assets 15,155,073 14,442,562 17,468,382 18,142,096 (Thousands of yen) Net assets 12,033,148 12,187,246 14,085,598 15,752,751 (Thousands of yen) Net assets per a share (Yen) 75,207.18 76,170.29 88,034.99 98,454.70 Notes1: The listed amount of money cuts off less than 1,000 yen, and net income and the net assets per one share round off to the third decimal place Notes2: Net income per a share is based on average number of issued shares during the period. Notes3: Net assets per share is based on average number of issued shares at the end of period.. Due to the revision of “Application Guideline of Accounting Standard concerning net income per share during the period (Item 4 of Application Guideline of Accounting Standard, September 25, 2002) ”on January 31,2006, this application guideline has been applied including gain and loss on deferred hedge since the 26th period. (4) The status of significant affiliated company Name Capital stock Portion of ownership Main business Riteirunetto Co., Ltd. 25,000 thousand yen 100% Processing silk print and sales of products Tomth(Shaoxing)Weaving And Dyeining Limited. 16,000 thousand USD 100% Production of cut and sewn　 Tomth(Shaoxing)Trading Limited. 100 thousand USD 100% Trading　 Tomth(Shanghai)Textile Limited. 500 thousand USD 100% Trading 2.The information about Directors (1)Name and position of each director Position Name CEO Masafumi Sakasita Director Kunihiko Ohashi Director Fumihiko Ito Auditor Takao Kashitani Note1:Takao Kashitani is outside auditor which is based on the paragraph 16 of the section 2 of The Corporate Law (2)Significant fact that directors have any representative positions in other companies RepresentativeDirector Masafumi Sakashita Tomth(shaoxing)Weaving and Dyeing Co., Ltd chairman/vice president Riteirunetto Co., Ltd. Director Omuuxeisu Limited Direotor Director Kunihiko Ohashi Tomth(Shaoxing)Weaving and Dyeing Co., Ltd Director/President Tomth(Shaoxing)Traiding Limited Director/President Tomth(Shanghai)Texitile Limited. Director/President Auditor Takao Kashidani Bureinkoa Co., Ltd Representative Director F•B Brain Co., Ltd Representative Director (3)Total amount of reward of director Division Payee Allowance Remark Director Auditor (outside auditor) 3 people 1 people (1 people) 187,233 Thousand of yen 4,459 (4,459) Thousand of yen Note 1:　The limit amount of directors’ (except the payment for employee in case one has both positions of director and employee) reword (provided in No.1, Item 1, Article 361 of The Companies Act) approved by Shareholders Meeting is 480,000 thousand yen per year. Note 2: The annual reward of inspectors (provided in Item 1, Article 387 of The Companies Act) is 50,000 thousand yen. 3.Stock information Top ten of shareholders who own more share of total amount in issued share at the end of the fiscal year Division/name of shareholder share of this company amount of share portion of ownership Masafumi Sakashita 117,600 share 73.5% Omuuxeisu Limited 36,800 share 23.0% Supplementary schedule (March 1, 2012～February 28, 2013) TOMS Co., Ltd. Table of contents 1. Details of tangible fixed assets and Intangible fixed assets 2. Details of allowances 3. Details of selling, general and administrative expenses 1. Details of tangible fixed assets and Intangible fixed assets Assets Beginning book value Increase of the term decrease of the term Written off of the term Closing book value accumulated depreciation Closing acquisition cost Tangible fixedassets Building 107,048 77,065 44,935 18,158 121,019 33,917 154,936 Structure 0 490 0 24 465 24 490 Vehicle 507 0 92 380 34 1,238 1,273 Tool 35,003 6,102 779 19,313 21,013 200,534 221,548 Total 142,559 83,658 45,807 37,877 142,532 235,716 378,248 Intangible fixed assets Trade 2,153 2,214 696 3,671 4,126 7,798 Software 114,239 166,212 46,840 47,717 185,894 190,664 376,559 Others 3,638 3,638 3,638 Total 120,032 168,427 46,840 48,413 193,205 194,790 387,996 2. Details of allowances Beginning balance Increase in the term Decrease in the term Closing balance Reason of reporting and way of calculating Intended use Others Allowance fordoubtful accounts 660,074 330,458 61,416 8,621 920,494 It is the street of mention of an important accounts policy Allowance for investment loss 899,476 899,476  Reserve for retirement allowance 47,552 12,130 7,230 52,452 Reserve for retirement benefits 441,775 34,660 476,435 3. Details of selling, general and administrative expenses Account Amount Notes Travel fee 116,711 Officer's compensation or remuneration 191,692 Salary and other allowances 638,984 Employees bonus and allowance 209,876 Reserve forretirement benefits 9,502 Reserve for retirementbenefits for officers 34,660 Legal welfare expenses 124,810 welfare expense 8,737 Cost of educationand training 1,451 Commission fee 48,620 Fare 512,551 Charges for custody 444,605 Packing andwrapping expenses 301,978 Administration costs 27,537 Advertising expenses 143,040 Social expenses 18,383 Commission paid 182,658 Rent account 163,247 Communication expenses 60,749 Utility expenses 10,064 Supplies expenses 51,697 Tax and public charge 11,988 Amount to be written as depreciation 90,076 Maintenance and repairs 43,819 Subcontract expenses 11,552 Business consignment expenses 136,212 Rental expense 30,156 Doubtful debt account 24,773 Others 35,340 Total 3,685,481