[final draft]20pages英訳02_トムス株式会社_第32期 事業報告

The 32nd (2012) Financial Report From March 1, 2011 To February 29, 2012 TOMS CO., LTD TOMS CO., LTD Balance sheet (February 29, 2012) (Amount：Thousand yen) Account Amount Account Amount Assets Liabilities Current assets 15,093,212 Current liabilities 2,893,456 Cash and deposits 9,663,274 Notes payable 374,675 Notes receivable 370,991 Accounts payable 740,748 Accounts receivable 1,239,168 Accrued amount payable 182,719 Merchandise 3,425,410 Accrued expenses 57,601 Supplies 53,441 Allowance for bonus payable 46,242 Advances payments 124,083 Income taxes payable 1,069,342 Prepaid expenses 37,514 consumption tax payable 122,072 Deferred tax assets 175,952 Advances by customers 15,141 Advances paid 5,485 Deposit payable 20,802 Temporary payment 6,510 Exchange contract 264,110 Allowance for doubtful accounts △8,621 Noncurrent assets 2,375,170 Noncurrent liabilities 489,327 Property, plant and equipment 142,559 Reserve for retirement benefits Building 107,048 Reserve for retirement benefits for officers 47,552 Vehicles 507 Reserve for retirement benefits 441,775 Tools, furniture & fixtures 35,003 Total liabilities 3,382,784 Intangible assets 305,380 Equity Right of trademark 2,153 Telephone subscription right 3,638 Software 299,588 Investments and other assets 1,927,230 Shareholder' equity 14,103,579 Investment securities 8,570 Capital stock 80,000 Stocks of subsidiaries and affiliates 28,049 Retained earnings 14,023,579 Investments in subsidiaries and affiliates 1,807,144 Legal reserve of retained earnings 20,000 Claims in bankruptcy, reorganization claims 1,273,946 Other retained earnings 14,003,579 Lease and guarantee deposits 155,977 Voluntary reserve 340,000 Deferred tax assets 195,405 　Retained earnings 13,663,579 Long-term prepaid expense 4,488 Valuation and translation adjustments △17,981 Others 4,578 Valuation difference on　other securities 3,018 Allowance for investment loss △899,476 Deferred gains or losses on hedges △21,000 Allowance for doubtful accounts △651,453 Total net equity 14,085,598 Total assets 17,468,382 Total liabilities and net equity 17,468,382 TOMS CO., LTD Income Statement From March 1, 2011 To February 29, 2012 (Amount：Thousand yen) Account Amount Net sales 　 15,140,591 Cost of sales 8,261,717 Gross profit 6,878,874 Selling, general and administrative expenses 3,420,303 Operation income 3,458,570 Non-operation income 　 Interest and Dividends income 10,979 Miscellaneous income 5,736 16,716 Non-operating expense 　 　 Loss on valuation of derivatives 516,440 Foreign exchange losses 275,764 Miscellaneous losses 2,282 794,487 Ordinary income 　 2,680,799 Extraordinary income 　 Reversal of allowance for doubtful receivables 179 179 Extraordinary loss 　 　 Loss on retirement of fixed assets 584 Provision of allowance for doubtful accounts 42,891 Others 55,748 99,224 Income before income taxes 　 2,581,755 Income tax, resident tax, business tax 1,219,862 　 income taxes – deferred △91,153 1,128,709 Net income 　 1,453,045 Statements of Shareholders' Equity From March 1, 2011 To February 29, 2012 (Amount：Thousand yen) 　 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 12,210,534 12,570,534 12,650,534 Changes during this period 　 　 　 　 　 　 Dividends from surplus 　 　 　 　 　 　 Net income 　 　 　 1,453,045 1,453,045 1,453,045 Changes other than shareholders' equity during this period 　 　 　 Total change during this period - - - 1,453,045 1,453,045 1,453,045 Balance as of this period 80,000 20,000 340,000 13,663,579 14,103,579 14,103,579 　 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 1,874 △465,162 △463,287 12,187,246 Changes during this period 　 　 　 　 Dividends from surplus 　 　 　 Net income 　 　 　 1,453,045 Changes other than shareholders' equity during this period 1,144 444,161 445,305 445,305 Total change during this period 1,144 444,161 445,305 1,898,351 Balance as of this period 3,018 △21,000 △17,981 14,085,598 Explanatory notes From March 1, 2011 To February 29, 2012 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.) Without 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) Leases Among the finance lease transations 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 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. 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 the 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. Explanatory notes regarding balance sheet Amounts are rounded down to the nearest thousand yen. Accumulated depreciation of assets itemized for each asset Building 19,659 Thousand yen Motor vehicles and transport equipment 766 Thousand yen Tools, furniture and fixtures 34,518 Thousand yen Monetary assets and liabilities to affiliated companies Short-term monetary receivables 9,942 Thousand yen Long-term monetary receivables 1,098,161 Thousand yen Short-term monetary liabilities 81,836 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 7,856 Thousand yen Goods purchased etc 1,355,770 Thousand yen Transactions other than operating transactions 23,748 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; Nothing Tax effect accounting Items of the main reasons for the accrual of deferred tax assets Deferred tax asset Provision for bonuses 19,444 Thousand yen Accrued enterprise tax 96,666 Thousand yen Accrued rent 5,039 Thousand yen Accrued tax office 2,495 Thousand yen Legal welfare expenses 2,383 Thousand yen Exchange contract 15,456 Thousand yen The provision for employees' retirement benefits 17,486 Thousand yen Provision for directors ' retirement benefits 63,942 Thousand yen Loss on valuation of investment securities 440 Thousand yen Subsidiaries 1,664 Thousand yen Allowance for loan losses deductible excess 36,228 Thousand yen Depreciation deductible excess 7,899 Thousand yen Asset retirement obligation 4,026 Thousand yen Total deferred tax assets 373,139 Thousand yen Deferred tax liability Unrealized gains on other securities △ 1,781Thousand yen Total deferred tax liabilities 　 △ 1,781 Thousand yen Net deferred tax assets (liabilities) 371,357 Thousand yen Fixed assets used under lease Class of assets Contents of the assets Motor vehicles and transport equipment Passenger car 24 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 Thousand yen Silk print And processing Product sales Direct 100% 1 person Our company Supplier Sales Purchase Interest income Software 7,856 222,751 356 2,816 Accounts receivable receivable Advances paid Accounts payable  payables 132 5256 24,112 Subsidiary Toms (shaoxing)Wearing and Dyeing Co., Ltd Shaoxing, Zhejiang, China 16,000 Thousand USD Cut sew Product manufacturing Direct 100% 2 persons Our company Supplier Purchase Interest 1,131,703 8,938 Accrued income Correction bankruptcy creditors Accounts payable 4,553 1,098,161 57,724 Subsidiary Toms (shaoxing)Wearing and Dyeing Co., Ltd Shaoxing, Zhejiang, China 100 Thousand USD Trading Direct 100% 1 Person Our company Supplier Purchase 1,306 Capital stock 8,192 (Notes) 1. Respect of the amount of the above, consumption taxes are not included in the transaction amounts, and 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 88,034 yen 99 sen Net income per share 9,081 yen 53 sen 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 ocio-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 by 25,281 thousand yen, and the amount of income taxes adjustment decreases by 25,644 thousand yen. Business overview From March 1, 2011 To February 29, 2012 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 Osaka Branch Nakanoshima,Kita-ku,Osaka City Hiroshima Branch Noboricho,Naka-ku,Hiroshima Fukuoka Branch Nishityusyu,Chuou-ku,Fukuoka Nagoya Branch NIshiki,Cyu-ku,Nagoya City Sendai Branch Honmachi,Aobadai-ku,Sendai Saitama Branch Sakuragichou,Oomiya-ku,Saitama city Okinawa Branch Mekaru,Naha City Sapporo Branch Kitaichijyonishi,Chuou-ku,Sappor Gifu Operation Group Ryutsu center nai,Yanaidutyou, Gifu City Shanghai Branch Yian west road,Changning-qu,Shanghai City Qingdao Branch Nanjing road,Qingdao City Status of worker 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 29th The 30th The 31st The 32nd (2009 fiscal year) (2010 fiscal year) (2011 fiscal year) (2012 fiscal year) Net sales 13,609,502 13,328,434 3,112,443 15,140,591 (Thousand yen) Ordinary income 3,295,995 3,283,488 457,096 2,680,799 (Thousand yen) Net income 769,305 1,772,685 88,592 1,453,045 (Thousand yen) Net income per a share (yen) 4,808.16 11,079.29 553.70 9,081.53 Total assets 13,087,890 15,155,073 14,442,562 17,468,382 (Thousand yen) Net assets 10,433,739 12,033,148 12,187,246 14,085,598 (Million yen) Net assets per a share 65,210.87 75,207.18 76,170.29 88,034.99 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 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% Production of cut and sewn Toms(Shaoxing) Trading Co., Ltd. (Thousand USD) 100 100.0% Trading　 The information about Directors Name and position of each director Position Name Representative Director Masafumi Sakasita Director Kunihiko Ohashi Director Fumihiko Ito Auditor Takao Kashitani Note 1 : Auditor Takao Kashitani is outside Auditor which is stipulated in Company act 2-16 Significant fact that directors have any representative positions in other companies Section Name Company name of other position Position Representative Director Masafumi Sakashita Toms (shaoxing)Wearing and Dyeing Co., Ltd chairman/ vice president Retail Net Co., Ltd. Director Omufeisu Limited Direotor Director Kunihiko Ohashi Toms (shaoxing)Wearing and Dyeing Co., Ltd Director/president Auditor Takao Kashidani Braincore Co., Ltd RepresentativeDirector FP Brain Co., Ltd RepresentativeDirector Total amount of reward of director Division Name of shareholder Payee Allowance Remark Director Auditor (outside auditor) 3 people 1 people (1 people) (Thousand yen) 190,324 3,344 (3,344) 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. 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 shares 73.5% Omufeisu Limited 36,800 23.0 The 32nd Supplementary schedule From March 1, 2011 To February 29, 2012 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) 113,187 (Thousand yen) 13,857 (Thousand yen) 336 (Thousand yen) 19,659 (Thousand yen) 107,048 (Thousand yen) 53,866 (Thousand yen) 160,914 Vehicles 1,170 103 - 766 507 7,025 7,533 Tool 60,205 9,563 247 34,518 35,003 166,153 201,156 Total 174,563 23,523 584 54,943 142,559 227,045 369,604 Intangible fixed assets Trade 604 2,000 - 450 2,153 3,429 5,583 Software 93,031 66,092 - 44,884 114,239 144,562 258,802 Others 3,638 - - - 3,638 - 3,638 Total 97,247 68,092 - 48,331 120,032 147,992 268,024 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) 597,244 (Thousand yen) 89,591 (Thousand yen) 16,206 (Thousand yen) 10,554 (Thousand yen) 6,600,744 It is the street of mention of an important accounts policy Allowance for investment loss 899,476 - - - 899,476 Reserve for retirement allowance 38,580 12,670 3,698 - 47,552 Reserve for retirement benefits 406,845 34,930 - - 441,775 Note : Decreased amount of allowance named “Others” means reversal amount. 3. Details of selling, general and administrative expenses Account Amount Notes Travel fee (Thousand yen) 120,394 Officer's compensation or remuneration 193,668 Salary and other allowances 637,443 Employees bonus and allowance 194,814 Reserve for retirement benefits 12,671 Reserve for retirement benefits for officers 34,930 Legal welfare expenses 118,640 welfare expense 14,541 Cost of education and training 2,545 Commission fee 33,855 Fare 525,314 Charges for custody 287,405 Packing and wrapping expenses 303,299 Administration costs 22,708 Advertising expenses 114,634 Social expenses 21,326 Commission paid 118,670 Rent account 147,959 Communication expenses 72,999 Utility expenses 9,005 Supplies expenses 41,882 Tax and public charge 17,141 Amount to be written as depreciation 104,806 Maintenance and repairs 43,844 Subcontract expenses 11,768 Business consignment expenses 110,220 Rental expense 26,961 Doubtful debt account 37,188 Others 39,658 Total 3,420,303