Suzuki 2007 Annual Report Download - page 45

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SUZUKI MOTOR CORPORATION
NOTE 14: Contingent liabilities
As of March 31, 2007, 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 .
¥7,405 $62,734
Trade notes discounted ....................................... 1,338 11,334
¥8,743 $74,069
Operating lease transactions as of March 31, 2007 and 2006 were as follows:
As a lessee Thousands of
Millions of yen U.S. dollars
2007 2006 2007
Future lease payments
Due within one year ..................................... ¥159 ¥224 $1,350
Thereafter ..................................................... 512 183 4,341
¥671 ¥408 $5,691
Thousands of
Millions of yen U.S. dollars
2007 2006 2007
Future lease revenues
Due within one year ..................................... ¥20 ¥53 $174
Thereafter ..................................................... 18 36 156
¥39 ¥90 $330
As a lessor
NOTE 13: Net assets
The Companies Act (Kaisha-hou) 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 “capital surplus”.
The Companies Act provides that an amount equivalent to 10% of cash dividends 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 Companies Act allows both the capital reserve and the other capital surplus to be transferred to the stated
capital following the approval at a shareholders’ meeting.
The legal reserves of the Company and its subsidiaries are included in “retained earnings” on the consolidated
balance sheet and are not shown separately.
According to the revision of the Companies Act, the Articles of the Company allows to repurchase treasury
stock and dispose of such treasury stock by resolution of the board of directors.
CONSOLIDATED FINANCIAL STATEMENTS OF 2007
45