[final draft]20pages英訳01_トムス株式会社_第31期 事業報告

The 31st (2011) Financial Report From November 1, 2010 To February 28, 2011 TOMS CO., LTD. TOSM CO., LTD. Balance Sheet (February 28, 2011) (Amount：Thousand yen) Account Amount Account Amount Assets Liabilities Current assets 12,170,188 Current liabilities 1,809,890 Cash and deposits 7,576,407 Notes payable 90,566 Notes receivable 344,295 Accounts payable 479,947 Accounts receivable 1,200,863 Accrued amount payable 167,037 Merchandise 2,219,503 Accrued expenses 51,912 Supplies 43,628 Allowance for bonus payable 44,247 Advances payments 306,479 Income taxes payable 99,000 Prepaid expenses 34,582 Advances by customers 9,538 Deferred tax assets 395,865 Deposit payable 19,596 Short-term loans receivable 30,000 Deferred income 73 Accrued refund of consumption tax 12,618 Exchange contract 847,970 Advances paid 4,827 　 　 Other current assets 11,860 　 　 Allowance for doubtful accounts △10,743 　 　 Noncurrent assets 2,272,373 Noncurrent liabilities 　 445,425 Property, plant and equipment 174,563 Reserve for retirement benefits 38,580 Building 113,187 Reserve for retirement benefits for officers 406,845 Vehicles 1,170 Tools, furniture and fixtures 60,205 Total liabilities 2,255,315 Intangible assets 227,981 Right of trademark 604 Telephone subscription right 3,638 Equity Software 223,738 Shareholder' equity 12,650,534 Investments and other assets 1,869,828 Capital stock 80,000 Investment securities 6,990 Retained earnings 12,570,534 Stocks of subsidiaries and affiliates 28,049 Legal reserve of retained earnings 20,000 Investments in subsidiaries and affiliates 1,798,952 Other retained earnings 12,210,534 Claims in bankruptcy, reorganization claims 1,150,849 Voluntary reserve 340,000 Lease and guarantee deposits 158,672 Retained earnings 12,210,534 Deferred tax assets 203,265 Valuation and translation adjustments △463,287 Long-term prepaid expense 9,025 Valuation difference on　other securities 1,874 Allowance for investment loss △899,476 Deferred gains or losses on hedges △465,162 Allowance for doubtful accounts △586,501 Total net equity 12,187,246 Total assets 14,442,562 Total liabilities and net equity 14,442,562 TOSM CO., LTD. Income Statement From November 1, 2010 To February 28, 2011 (Amount: Thousand yen) Account Amount Net sales 　 3,112,443 Cost of sales 1,591,355 Gross profit 1,521,087 Selling, general and administrative expenses 971,805 Operation income 549,282 Non-operation income 　 Interest and Dividends income 2,861 Miscellaneous income 2,055 4,917 Non-operating expense 　 　 Foreign exchange losses 96,974 losses 128 97,102 Ordinary income 　 457,096 Extraordinary income 　 Reversal of allowance for doubtful receivables 18,375 18,375 Extraordinary loss 　 　 Loss on retirement of fixed assets 55,354 Provision of allowance for doubtful accounts 148,099 Others 5,237 208,691 Income before income taxes 　 266,779 Income taxes deferred 98,516 　 Income interest 79,670 178,187 Net income 　 88,592 Statements of Shareholders' Equity From November 1, 2010 To February 28, 2011 (Amount : Thousand yen) 　 Statement of changes in net assets Capital stock Retained earnings Total shareholders' equity Legal capital surplus Other retaining earnings Total retained earnings Voluntary reserve Retained earning brought forward Balance at the end of previous period 80,000 20,000 340,000 12,137,942 12,497,942 12,577,942 Changes during this period 　 　 　 　 　 　 Dividends from surplus 　 　 　 △16,000 △16,000 △16,000 Net income 　 　 　 88,592 88,592 88,592 Changes other than shareholders' equity during this period (net base) 　 　 　 Total change during this period - - - 72,592 72,592 72,592 Balance as of this period 80,000 20,000 340,000 12,210,534 12,570,534 12,650,534 　 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 Balance at the end of previous period 691 △545,485 △544,793 12,033,148 Changes during this period 　 　 　 　 Dividends from surplus 　 　 　 △16,000 Net income 　 　 　 88,592 Changes other than shareholders' equity during this period (net base) 1,183 80,323 81,506 81,506 Total change during this period 1,183 80,323 81,506 154,098 Balance as of this period 1,874 △465,162 △463,287 12,187,246 Explanatory notes From November 1, 2010 To February 28, 2011 Explanatory notes regarding significant accounting policies Valuation basis and method for assets Valuation basis and method for securities Stocks of subsidiaries ・・・ method of moving average cost Other 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.) With no fair market value・・・method of moving average cost Valuation basis and method for derivative Market value method Valuation 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) Method of Lease transaction 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. Explanatory 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 Hedging policy forecasted transactions 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. Equivalent 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. A method of depreciation of fixed assets Property, plant and equipment・・・ Fixed rate method Intangible assets・・・・・・・ The company depreciates internal-use software using fixed amount method over the estimated usable period (5 years). Other intangible assets are depreciated primarily by fixed amount method. Allocation of allowance 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. Accrued bonuses In order to prepare for the payment of bonuses for employees, accrued bonuses is stated at amount based on projected payment. Reserve for retirement allowance In order to prepare for retirement benefits for employees, the companies provides for shortcut method (voluntary year-end necessary payment). 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 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. Accounts processing of consumption tax Consumption tax is stated at tax exclusion method. Changes in accounting policies Asset retirement obligation From the fiscal year, the company provides for "Guidance on Accounting Standard for Asset Retirement Obligations" (No. 18, ASBJ Statement March 31, 2008) and "Accounting Standard for Asset Retirement Obligations" (No. 21 ASBJ Guidance March 31, 2008). For this reason, ordinary income and operating income were decreased by 1,403,000 yen and income before income taxes was decreased by 6,641,000 yen . Explanatory notes regarding balance sheet Amounts are rounded down to the nearest Thousand yen. Accumulated depreciation of each asset are listed below; Building 37,712 Thousand yen Motor vehicles and transport equipment 6,259 Thousand yen Tools, furniture and fixtures 205,178 Thousand yen Monetary assets and liabilities to affiliated companies Short-term monetary receivables 42,810 Thousand yen Long-term monetary receivables 1,007,278 Thousand yen Short-term monetary liabilities 59,533 Thousand yen Explanatory notes regarding income statement Amounts are rounded down to the nearest thousand yen. 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 1,547 Thousand yen Goods purchased and other similar things 265,931 Thousand yen Transactions other than operating transactions 2,086 Thousand yen Explanatory notes regarding statement of changes in net assets Type and number of shares outstanding at the end of the fiscal year is; Common stock   160,000 shares Distribution of surplus of the business during the year is; Dividends paid At the annual shareholders' meeting of December 28, 2010, following resolution were resolved. Total amount of dividends 16,000 Thousand yen Dividend per share 100 yen Reference date October 31, 2010 Effective Date December 28, 2010 Tax effect accounting Items of the main reasons for the accrual of deferred tax assets Deferred tax asset Provision for bonuses 18,490 Thousand yen Accrued enterprise tax 8,861 Thousand yen Advertising expense 765 Thousand yen Accrued rent 8,637 Thousand yen Accrued tax office 128 Thousand yen Legal welfare expenses 2,220 Thousand yen Exchange contract 333,947 Thousand yen The provision for employees' retirement benefits 15,761 Thousand yen Provision for directors ' retirement benefits 170,020 Thousand yen Loss on valuation of investment securities 496 Thousand yen Subsidiaries 1,874 Thousand yen Allowance for loan losses deductible excess 28,224 Thousand yen Depreciation deductible excess 8,271 Thousand yen Asset retirement obligation 2,775 Thousand Total deferred tax assets 660,476 Thousand yen Deferred tax liability Unrealized gains on other securities △ 1,345 Thousand yen Total deferred tax liabilities 　 △ 1,345 Thousand yen Net deferred tax assets (liabilities) 559,130 Thousand yen Fixed assets used under lease Class of assets Contents of the assets Motor vehicles and transport equipment Passenger car 22 units 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 yen ) Subject Balance at end of year (Thousands 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% 1 person Our company Supplier Sales Purchase Loans Interest income 1,547 38,136 － 145 Accounts receivable Short-term loans receivable   Advances Accounts payable-trade Accounts Payable- others 248 30,000 4,564 15,436 14,321 Subsidiary Toms (shaoxing)Wearing 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 Loans Interest income - 227,794 - 1,941 Accrued income Correction bankruptcy creditors Accounts payable-trade 7,997 1,007,278 61,289 (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. 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. Per share information Net assets per share 76,170 yen 29 sen Net income per share 553 yen 70 sen Business overview From November 1, 2010 To February 28, 2011 The item of the statement of our company 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. Main branches /factories/statement of workers Head office　3-16-3 Higashi, Shibuya-ku, Tokyo Branch Name Address Sapporo Branch Nishi, Minaminijyo,Tyuou-ku,Sappor Sendai Branch Honmachi, Aoba-ku,Sendai City Saitama Branch Sakurashinmachi,Oomiya-ku,Saitama City Nagoya Branch Nishiki,Naka-ku,Nagoya City Osaka Branch Nakanoshima,Kita-ku,Osaka City Hiroshima Branch Noboricho,Naka-ku,Hiroshima Fukuoka Branch Chuou-ku,Fukuoka Okinawa Branch Mekaru,Naha City, Shanghai Branch Yian west road,Changning-qu,Shanghai City Qingdao Branch Nanjing road,Qingdao City Gifu Operation Center Ryutsu center nai,Yanaidutyou, Gifu City Status of employee Status of employee section Number of employees Compared to previous period Average age Average years of service Man 96people 12 people age 33.12 6.20 years Woman 53 △10 31.24 5.71 Total 149 2 32.45 6.03 Notes：Contract employees are not included. Change in the profit and loss, and property Division Period The 28th The 29th The 31st The 32nd (2008 fiscal year October) (2009 fiscal year October) (2010 fiscal year October) (2011 fiscal year February) Net sales 13,263,407 13,609,502 13,328,434 3,112,443 (Thousand yen) Ordinary income 2,903,524 3,295,995 3,283,488 457,096 (Thousand yen) Net income 1,525,379 769,305 1,772,685 88,592 (Thousand yen) Net income per a share (yen) 9,533.62 480,8.16 11,079.29 553.70 Total assets 12,458,442 13,087,890 15,155,073 14,442,562 (Thousand yen) Net assets 9,779,184 10,433,739 12,033,148 12,187,246 (Million yen) Net assets per a share 61,119.90 65,210.87 75,207.18 76,170.29 Notes1:The listed amount of money cuts off less than 1,000 yen, and net income and the net assets per share round off to the third decimal place. Notes2: Net income per share is based on the 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. The status of significant affiliated company Name Capital stock Portion of ownership Main business Retail Net Co., Ltd. Thousand yen 25,000 100.0% Processing silk print and sales of products Toms (Shaoxing)Wearing And Dyeing Co., Ltd. Thousand USD 16,000 100.0% - The information about Directors Name and position of each director Position Name Representative Director Masafumi Sakasita Director Kunihiko Ohashi Director Fumihiko Ito Significant fact that directors have any representative positions in other companies section Name Name of the company Post RepresentativeDirector Masafumi Sakashita Toms (shaoxing)Wearing and Dyeing Co., Ltd chairman Retail Net Co., Ltd. Director Omufeisu Limited Direotor Director Kunihiko Ohashi Toms(shaoxing)Wearing and Dyeing Co., Ltd Director/president Total amount of reward of director Section Payee Allowance Remark Director 3 people (Thousand yen) 26,691 notes 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 Stock information Total number of authorized shares 640,000 shares Total number of issued shares 160,000 shares The number of the 3 people Top ten of shareholders who own more share of total amount sin 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% Omfeisu Limited 36,800 23.0 Kunihiko Ohashi 5,600 3.5 The 31st Supplementary schedule From November 1, 2010 To February 28 2011 TOMS CO., LTD. Contents Page 1. Details of tangible fixed assets and Intangible fixed assets 1 2. Details of allowances 1 3. Details of selling, general and administrative expenses 2 Details of tangible fixed assets and Intangible fixed assets Section 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 (Thousand yen) 119,514 (Thousand yen) (Thousand yen) (Thousand yen) 6,327 (Thousand yen) 113,187 (Thousand yen) 37,712 (Thousand yen) 183,114 Vehicles 1,480 - - 309 1,170 6,259 7,430 Tool 67,752 4,151 - 11,698 60,205 205,178 348,897 Total 188,747 4,151 - 18,334 174,563 249,150 539,815 Intangible fixed assets Trade 730 - 126 604 3,179 3,783 Software 280,061 22,871 65,588 13,606 223,738 142,883 366,621 Others 3,638 - - - 3,638 - 3,638 Total 284,431 22,871 65,588 13,733 227,981 146,063 374,044 Details of allowances Section Beginning balance Increase of the term Decrease of the term Closing balance Reason of reporting andway of calculating Intended use Others Allowance fordoubtful accounts (Thousand yen) 453,649 (Thousand yen) 155,917 (Thousand yen) 4,505 (Thousand yen) 7,818 (Thousand yen) 597,244 It is the street of mention of an important accounts policy Allowance for investment loss 899,476 - - - 899,476 Reserve for retirement allowance 36,829 2,713 962 - 38,580 Reserve for retirement benefits 400,545 6,300 - - 406,845 Note : Decreased amount of allowance named “Others” means reversal amount. Details of selling, general and administrative expenses Account Amount Notes Travel fee (Thousand yen) 35,586 Officer's compensation or remuneration 26,691 Salary and other allowances 202,421 Employees bonus and allowance 58,911 Reserve for retirement benefits 2,713 Reserve for retirement benefits for officers 6,300 Legal welfare expenses 42,232 Welfare expense  2,338 Commission fee 10,521 Fare 109,679 Charges for custody 81,148 Packing and wrapping expenses 42,954 Administration costs 3,072 Advertising expenses 63,531 Social expenses 7,713 Commission paid 35,575 Rent account 49,148 Communication expenses 22,318 Utility expenses 3,061 Supplies expenses 11,662 Tax and public charge 1,235 Amount to be written as depreciation 52,626 Maintenance and repairs 15,105 Subcontract expenses 4,408 Business consignment expenses 49,458 Rental expense 8,921 Others 22,466 Total 971,805