Casio 2013 Annual Report Download - page 27

4. Inventories
Inventories at March 31, 2013 and 2012:
Millions of Yen
Thousands of
U.S. Dollars
2013 2012 2013
Finished goods ¥39,665 ¥29,358 $421,968
Work in process 5,573 5,955 59,287
Raw materials and supplies 8,877 10,276 94,436
Total ¥54,115 ¥45,589 $575,691
5. Fair Value of Financial Instruments
Information on financial instruments for the years ended March 31, 2013 and 2012:
(1) Qualitative information on financial instruments
1) Policies for using financial instruments
The Group invests surplus funds in highly secure financial assets, and funds required for working capital and
capital investments are raised through the issuance of bonds or loans from financial institutions such as banks.
Derivatives are used to avoid the risks described hereinafter and no speculative transactions are entered into.
2) Details of financial instruments used and risks involved, and how they are managed
Notes and accounts receivable—trade are exposed to customers’ credit risk. To minimize that risk, the
Group periodically monitors the due date and the balance of the accounts.
Securities and investment securities are primarily highly secure and highly-rated debt securities and
shares in companies with which the Group has business relations, and are exposed to market price fluctua-
tion risk. The Group periodically monitors the market price and reviews the status of these holdings.
Operating payables comprising notes and accounts payable—trade and accounts payable—other have
the due date of within one year.
Operating payables, loans payable, and bonds payable are subject to liquidity risk (the risk of an inability
to pay by the due date). However, the Group manages liquidity risk by maintaining short-term liquidity in
excess of a certain level of consolidated sales or by other means.
The Group uses derivative transactions of forward foreign currency contracts to hedge currency fluctua-
tion risks arising from assets and liabilities denominated in foreign currencies, as well as interest rate swap
contracts to fix the cash flows associated with loans payable and bonds payable or to offset market fluctua-
tion risks. The Group utilizes and manages derivative transactions following the internal regulations for
them, which stipulates policy, objective, scope, organization, procedures and financial institutions to deal
with, and has an implementation and reporting system for derivative transactions reflecting proper internal
control functions.
3) Supplemental information on fair values
The fair value of financial instruments is calculated based on quoted market price or, in case where there is
no market price, by making a reasonable estimation. Because the preconditions applied include a floating
element, estimation of fair value may vary. The contract amounts, as presented in Note 7 “Derivative
Transactions,” do not reflect market risk.
(2) Fair values of financial instruments
The following table summarizes book value and fair value of the financial instruments, and the difference
between them as of March 31, 2013 and 2012. Items for which fair value is difficult to estimate are not
included in the following table (see Note 2 on P28).
Millions of Yen
For 2013 Book value Fair value Difference
Assets
[1] Cash and deposits ¥ 56,029 ¥ 56,029 ¥ —
[2] Notes and accounts receivable—trade 50,490 50,490 —
[3] Securities and investment securities
a. Held-to-maturity debt securities 3,298 3,308 10
b. Available-for-sale securities 81,348 81,348 —
Total assets ¥191,165 ¥191,175 ¥ 10
Liabilities
[1] Notes and accounts payable—trade ¥ 35,709 ¥ 35,709 ¥ —
[2] Short-term loans payable 4,400 4,400 —
[3] Accounts payable—other 18,777 18,777 —
[4] Bonds payable 31,278 31,680 402
[5] Long-term loans payable 77,900 78,384 484
Total liabilities ¥168,064 ¥168,950 ¥886
Derivative transactions * ¥ (222) ¥ (222) ¥ —
Profile / Contents CASIO’s StrengthHistory To Our Stakeholders At a Glance Special Feature CSRCorporate Governance Corporate Data
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