Isuzu 2007 Annual Report Download - page 40

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Isuzu Motors Limited Annual Report 2007
Financial Section
(3) Mandatory Acquisition
The Class-IV preferred stocks which are not requested for acquisi-
tion during the period in which a request for acquisition is possible
shall become common stocks on the day determined by the Board of
Directors Meeting which is held on the next day of the last day of the
said period (hereinafter referred to as the base date of Mandatory ac-
quisition) and the number of the common stocks is obtained from di-
viding the amount equal to the amount paid per stock of the Class-IV
preferred stocks by the average price (calculated to the first decimal
point and then rounded up) of the daily closing price (including quot-
ed price) in regular transactions of common stocks of the Company
at the Tokyo Stock Exchange. during 30 business days (excluding days
without closing price) starting from the 45th business day preceding
the base date of Mandatory acquisition.
When the average price is lower than the floor acquisition price,
the Class-IV preferred stocks shall become common stocks whose
number is obtained from dividing the amount equal to the amount
paid per stock of the Class-IV preferred stock by the floor acquisition
price. Also, when the average price is more than the maximum acqui-
sition price, they shall become common stocks whose number is ob-
tained from dividing the amount equal to the amount paid per stock
of the Class-IV preferred stocks by the maximum acquisition price.
When fractions less than 1 are produced in calculating the above
number of common stocks, they shall be treated according to the
treatment specified in the Article 234 of the Corporation Law.
9. Land Revaluation
In accordance with the Law concerning Revaluation of Land en-
acted on 31 March, 1999, the land used for business owned by the
Company and its domestic consolidated subsidiaries and domes-
tic affiliates was revalued, and the unrealized gain on the revalua-
tion of land, net of deferred tax, was reported as “Variance of Land
Revaluation” within Net Assets, and the relevant deferred tax was
reported as “Deferred Tax Liabilities related to Land Revaluation” in
Liabilities for the fiscal year ended 31 March, 2007.
Revalued Date: 31 March, 2000
In accordance with the Law concerning Revaluation of Land enacted
on March 31, 1998, the land used for business owned by some of the
Company’s non-consolidated subsidiaries and affiliates accounted for
by the equity method were revalued.
Revalued Date: 31 March, 2002
The method of revaluation is as follows:
Under article 2-4 of the Enforcement Ordinance on Law concern-
ing Revaluation of Land, the land price for the revaluation is deter-
mined based on the official notice prices assessed and published by the
Commissioner of National Tax Agency of Japan as basis for calculation
of Landholding Tax as stipulated in article 16 of the Landholding Tax
Law. Appropriate adjustments for the shape of land and the timing of
the assessment has been made. The land price for the revaluation for
some of the land is based on land appraisal.
The difference of the total fair value, revalued based on the article
10 of the Enforcement Ordinance on Law concerning Revaluation of
Land, of business land for the end of this fiscal year and the total book
price for the business land revalued was ¥56,332 millions ($477,192
thousands).
(c) Adjustment of Acquisition Price
After the issue of Class-IV preferred stocks, if any of the followings
applies, the acquisition price shall be adjusted by the formula below
(hereinafter referred to as formula for the adjustment of acquisition
price). In this formula, figures shall be calculated to the first decimal
point and then rounded up.
No. of new and disposal common stocks x Amount paid per share
Market value per share
No. of issued common stocks +
Adj. acquisition price = Pre-adjust acquisition price x
No. of issued common stocks + No. of new and disposal common stocks
(iii) The Number of Common Stocks to be issued in exchange for the
acquisition of the Class-IV Preferred Stocks
No. of common stocks issued in exchange for
the acquisition of the Class-IV preferred stocks =
Total value equal to paid-in amount of the Class-IV Preferred Stocks
submitted by Shareholders asking for Acquisition
Acquisition Price
The number of common stocks of the Company to be issued in ex-
change for the acquisition of the Class-IV preferred stocks shall be as
follows.