JVC 1999 Annual Report Download - page 20

Total current assets declined ¥26,770 million (US$221.2
million) owing to a reduction in inventories and a decrease
in notes and accounts receivable. Total current liabilities fell
¥45,004 million (US$371.9 million) due to decreases in
bank loans and notes and accounts payable. As a result,
working capital rose ¥18,234 million to ¥142,628 million
(US$1,178.7 million). The current ratio improved from 1.44
to 1.59.
Interest-bearing debt advanced ¥4,602 million to
¥165,811 million (US$1,370.3 million) owing to an increase
in the number of consolidated subsidiaries. In considera-
tion of the Company’s financial position, bank loans were
decreased and direct procurement of funds was increased.
Stockholders’ equity fell ¥10,924 million to ¥232,162
million (US$1,918.7 million) as a result of allocation of re-
tained earnings following the net loss during the term. As
the reduction in liabilities was greater than the decline in
stockholders’ equity, stockholders’ equity as a percentage
of total assets was 39.5% compared with 39.0% in the
previous fiscal year. Stockholders’ equity per share was
¥913.20 (US$7.55).
Year 2000 Preparations
JVC recognizes the seriousness of the Year 2000 (Y2K)
problem, and is promoting Y2K readiness primarily through
the Committee for Year 2000 Problems. The Committee
comprises five smaller committees representing products,
information systems, production materials, production
facilities and buildings. Duties include checking the status
of current preparations, execution of preparations, in-
house and affiliate awareness programs and the formation
of a risk management plan for contingencies. Progress is
reported to Company management and conferences are
held concerning preparations as necessary.
A review of all Company products sold since January
1992 for Y2K compliance has been completed. Information
regarding products that require attention is available on the
Company’s web site and from other sources. Ongoing
preparations of in-house information systems began in
1996 and are scheduled for completion in August 1999.
Primary Group companies in Japan and overseas are also
implementing similar preparations. Preparations of other
production facilities, production materials and buildings are
underway with completion planned for September 1999.
While it is difficult to pin down Y2K costs, expenditures
of ¥2,700 million are allocated for the Group, including in-
house preparation costs. Approximately 70% of this
amount has been accounted for up to the fiscal year under
review. These expenditures are not expected to adversely
affect future business performance.
18 JVC 1999