Isuzu 2005 Annual Report Download - page 31

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Isuzu Motors Limited Annual Report 2005
FINANCIAL SECTION
(3) Mandatory Conversion
The Class-IV preferred stocks which are not requested for conver-
sion during the period in which a request for conversion is possible
shall become common stocks on the day determined by the Board
of Directors’ Meeting which is held on the next day of the last day of
the said period (hereinafter referred to as the base date of Mandatory
conversion) and the number of the common stocks is obtained from
dividing the amount equal to the amount paid per stock of the Class-
IV preferred stocks by the average price (calculated to the first decimal
point and then rounded up) of the daily closing price (including quot-
ed price) in regular transactions of common stocks of the Company
at the Tokyo Stock Exchange. during 30 business days (excluding days
without closing price) starting from the 45th business day preceding
the base date of Mandatory conversion.
When the average price is lower than the floor conversion price, the
Class-IV preferred stocks shall become common stocks whose num-
ber is obtained from dividing the amount equal to the amount paid
per stock of the Class-IV preferred stock by the floor conversion price.
Also, when the average price is more than the maximum conversion
price, they shall become common stocks whose number is obtained
from dividing the amount equal to the amount paid per stock of the
Class-IV preferred stocks by the maximum conversion price.
When fractions less than 1 are produced in calculating the above
number of common stocks, they shall be treated according to the
treatment of the reverse split of stocks stipulated in the Commercial
Law.
(iii) The Number of Common Stocks to be issued through Conversion
The number of common stocks of the Company to be issued through the conversion of the Class-II preferred stocks shall be as follows.
When fractions less than 1 are produced in calculating the number of common stocks to be issued, they shall be dropped.
Total Amount of Issue Price of Class- IV Preferred Stocks submitted by
No. of common stocks Shareholders for asking Conversion
issued thru conversion Conversion Price
=
9. Land Revaluation
In accordance with the Law concerning Revaluation of Land en-
acted on 31 March, 1999, the land used for business owned by the
Company was revalued, and the unrealized gain on the revalua-
tion of land, net of deferred tax, was reported as “Variance of Land
Revaluation” within Stockholders’ Equity, and the relevant deferred
tax was included in Liabilities as “Deferred Tax Liabilities related to
Land Revaluation” for the fiscal year ended 31 March, 2005.
In accordance with the Law concerning Revaluation of Land enacted
on March31, 1998, the land used for business owned by some of the
Company’s non-consolidated subsidiaries and affiliates which were ac-
counted for by the equity method were revalued.
The method of revaluation is as follows:
Under article 3-3 of the enforcement ordinance for the law, the land
price for the revaluation is determined based on the official notice
prices assessed and published by the National Land Agency of Japan,
after appropriate adjustments for the shape of land and the timing of
the assessment on 31 March, 1999.
10. Contingent Liabilities
Contingent liabilities at March 31, 2005 were as follows:
Thousands of
Millions of yen U.S. dollars
Guarantees of bank loans
Export bills discounted
Notes discounted
Notes endorsed
$ 89,724
16,098
31,041
250
¥ 9,635
1,728
3,333
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