Suzuki 1999 Annual Report Download - page 25

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Assets pledged as collateral as of 31st March, 1999:
Millions of Thousands of
yen U.S. dollars
Receivables ........................................................................... ¥ 415 $ 3,466
Inventories ............................................................................ 8,263 68,551
Property, plant and equipment ........................................... 7,476 62,020
¥16,155 $134,017
The 2.1 per cent. convertible bonds outstanding as of 31st March, 1999 may be redeemed
at the option of the Company, in whole or in part, at prices ranging from 103 per cent. to 100
per cent. of the principal amount under certain conditions as provided in the applicable
agreement.
The 2.1 per cent. convertible bonds are convertible into common stock at the options of
holders at the conversion price of ¥609.1 per share, after giving effect to the new shares
issued to General Motor Corporation (see Note 7). If the outstanding convertible bonds were
fully converted as of 31st March, 1999, approximately 2,630,000 additional shares of
common stock would be issued.
As is customary in Japan, both short-term and long-term bank loans are subject to general
agreements which provide that the banks may, under certain circumstances, request
additional security for those loans, and may treat any security furnished to the banks, as well
as cash deposited with them, as security for all present and future indebtedness.
6. Lease transactions
Finance lease transactions, except for those which meet the conditions that the ownership
of the leased assets is substantially transferred to the lessee,as of 31st March, 1999 and 1998
were as follows:
As a lessee
(1)Amounts equivalent to acquisition
costs, accumulated depreciation and
net balance as of 31st March, 1999
1999 1998 1999
Acquisition costs ........................................ ¥2,093 ¥ — $17,368
Accumulated depreciation......................... (1,749) — (14,513)
Net balance ................................................. 344 — 2,855
(2)Future lease payments
Due within one year ................................... 325 462 2,696
Thereafter.................................................... 417 602 3,465
742 1,064 6,162
(3)Lease expenses ............................................... 470 531 3,901
Depreciation .................................................... ¥ 369 ¥ — $ 3,062
Thousands of
Millions of yen U.S. dollars