Suzuki 2003 Annual Report Download - page 38

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SUZUKI MOTOR CORPORATION
12. Contingent liabilities
As of March 31, 2003, the Company and certain consolidated subsidiaries had the following
contingent liabilities:
Millions of Thousands of
yen U.S. dollars
Guarantee of indebtedness of affiliates and others .
¥12,684 $105,531
Trade notes discounted ....................................... 1,715 14,270
¥14,400 $119,801
Operating lease transactions as of March 31, 2003 were as follows:
As a lessee Thousands of
Millions of yen U.S. dollars
2003 2002 2003
Future lease payments
Due within one year ..................................... ¥ 190 ¥185 $1,585
Thereafter ..................................................... 517 617 4,308
¥ 708 ¥803 $5,894
Thousands of
Millions of yen U.S. dollars
2003 2002 2003
Future lease revenues
Due within one year ..................................... ¥ 65 ¥ 32 $ 544
Thereafter ..................................................... 160 26 1,336
¥ 226 ¥ 59 $1,881
As a lessor
11. Shareholders' equity
The Commercial Code requires that at least 50% of the issue price of new shares be included in a
company's stated capital. The portion to be recorded as stated capital is determined by resolution of
the Board of Directors. Proceeds in excess of the stated capital should be credited to "Additional
paid-in capital".
The Commercial Code provides that an amount equivalent to a minimum of 10% of cash dividends
and bonuses paid to directors and corporate auditors should be appropriated as a legal reserve
until the reserve reaches a certain limit, defined as 25% of the stated capital less certain capital
reserves.
The Commercial Code allows both the capital reserve, including "Additional paid-in capital", and
the legal reserve to be transferred to the stated capital, by resolution of the Board of Directors, or to
be used to reduce a deficit following the approval at a shareholders' meeting. In addition, under the
Commercial Code, the capital reserve and the legal reserve may be available for dividends to the
extent that the total of the capital and legal reserve taken together do not fall below 25% of the stated
capital. The legal reserves of the Company and its subsidiaries are included in "Retained Earnings"
on the consolidated balance sheet and are not shown separately.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
38