Alpine 2007 Annual Report Download - page 25

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23
5. Inventories
Inventories at March 31, 2007 and 2006 comprised the following:
2007 2006 2007
Finished products ¥20,937 ¥21,142 $177,357
Work in process 1,425 1,400 12,071
Raw materials and supplies 6,471 6,008 54,816
Total ¥28,833 ¥28,550 $244,244
Thousands of U.S. Dollars
Millions of Yen
6. Bank Loans and Long-Term Debt
Bank loans generally consisted of overdrafts from banks with interest rates ranging from 2.77% to 7.00% at March 31, 2007, and from 2.75% to 5.25%
at March 31, 2006.
There was no long-term debt at March 31, 2007 and long-term debt at March 31, 2006 consisted of the following:
2007 2006 2007
Secured loan from Hungarian government due through 2006 with interest rate 0% ¥— ¥7 $—
Less amount due within one year — (7) —
Total ¥— ¥— $—
Thousands of U.S. Dollars
Millions of Yen
At March 31,2007, and 2006, there was no pledge of collateral for long-term secured debt.
The Company has credit lines from banks, and the total unused credit available at March 31, 2007 and 2006 were ¥11,000 million (US$93,181
thousand) and ¥11,000 million, respectively.
7. Contingent Liabilities
A Company’s unconsolidated affiliate Alpine do Brasil Ltda. (“AOBR”) (100% owned by Alpine Electronics of America, Inc. (100% owned)) had
applied the reduction of import duty thorough the submission of a petition for qualification of industrialization addressed to the Foreign Trade
Secretariat of the Ministry of Development, Industry and Foreign Trade of Brazil. However AOBR was announced that its operation had not consisted
of industrialization and noticed a tax deficiency of Real$6.4million (¥355million or $3.0million), that consisted of excise tax R$2.0million, import duty
R$1.4million, penalty R$2.5million, and arrears interest R$0.5million, by the tax authority of Brazil. AOBR commenced the administrative dispute
procedure against the Federal Revenue Judgment Offices in May 2003. In November 2006, the Federal judgment revenue officer issued the
notification of the decision mentioning AOBR must pay R$9.4million (¥520million or $4.4million) consisting of excise tax R$2.0million, import duty
R$1.4million, penalty R$2.5million, and arrears interest R$3.5million. AOBR instituted the administrative dispute and appealed to the Tax Payers’
Council of the Ministry of Finance in December 2006.