Mitsubishi 2004 Annual Report Download - page 47

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45
MMC had unused lines of credit of ¥105,900 million ($1,001,986 thousand) and ¥156,500 at March 31, 2004 and 2003,
respectively. The credit line in existence at March 31, 2004 was originally available until September 17, 2004, however there
were related conditions and the contract was subsequently terminated on June 21, 2004.
12. STOCKHOLDERS’ EQUITY
The Commercial Code of Japan (the “Code”) provides that an amount equal to at least 10% of the amount to be disbursed as a
distribution of earnings should be appropriated to the legal reserve until the sum of the legal reserve and capital surplus equals at
least 25% of the common stock account. The Code also stipulates that, to the extent that the sum of capital surplus account
and the legal reserve exceed 25% of the common stock account, the amount of any such excess is available for appropriation by
resolution of the stockholders. MMC and its domestic subsidiaries have provided these amounts in accordance with the Code.
The legal reserve, which is included in accumulated deficit amounted to ¥0 million at March 31, 2004 and ¥9,029 million at
March 31, 2003.
Unrealized holding gain on securities and derivative financial instruments is not available for dividends.
At the stockholders’ meeting held on June 25, 2003, the disposition of the non-consolidated accumulated deficit of MMC
of ¥197,179 million ($1,865,637 thousand) by offset against capital surplus was approved, as permitted by the Code. As a
result, the capital surplus will decreased by the same amount.
13. CONTINGENT LIABILITIES
Trade notes endorsed in the ordinary course of business amounted to ¥12 million ($121 thousand) and ¥112 million at March
31, 2004 and 2003, respectively.
Loans guaranteed given in the ordinary course of business amounted to ¥6,721 million ($63,596 thousand) and ¥9,691 mil-
lion at March 31, 2004 and 2003, respectively. Agreements similar to guarantees given in the ordinary course of business
amounted to ¥4,518 million ($42,749 thousand) and ¥5,171 million at March 31, 2004 and 2003, respectively.
14. SELLING, GENERAL AND ADMINISTRATIVE EXPENSES
Selling, general and administrative expenses for the years ended March 31, 2004 and 2003 were as follows:
In millions of yen In thousands of
U.S. dollars
2004 2003 2004
Sales promotion and advertising ¥167,925 ¥186,724 $1,588,848
Freight 30,109 49,614 284,886
Bad debts expense 2,907 12,648 27,513
Salaries and wages 80,921 119,691 765,644
Pension expenses 9,864 8,933 93,334
Severance payments to directors and corporate auditors 738 2,087 6,983
Depreciation 12,148 19,336 114,949
Research and development 68,874 77,956 651,669
Others 82,249 163,275 778,215
Total ¥455,739 ¥640,268 $4,312,044