Consolidated Financial Statements
Asanuma Corporation
Years ended March 31, 2013 and 2012
with Independent Auditor’s ReportAsanuma Corporation
Consolidated Financial Statements
Years ended March 31, 2013 and 2012

Contents

Consolidated Financial Statements
Independent Auditor’s Report ............................................................................................. 1
Consolidated Balance Sheets............................................................................................... 2
Consolidated Statements of Operations............................................................................... 4
Consolidated Statements of Comprehensive Loss .............................................................. 5
Consolidated Statements of Changes in Net Assets ............................................................ 6
Consolidated Statements of Cash Flows ........................................................................... 7
Notes to Consolidated Financial Statements ....................................................................... 9Independent Auditor’s Report
The Board of Directors
Asanuma Corporation
We have audited the accompanying consolidated financial statements of Asanuma Corporationand its consolidated subsidiaries, which comprise the consolidated balance sheet as at March 31,
2013, and the consolidated statements of operations, comprehensive loss, changes in net assets,
and cash flows for the year then ended and a summary of significant accounting policies andother explanatory information, all expressed in Japanese yen.
Management’s Responsibility for the Consolidated Financial Statements
Management is responsible for the preparation and fair presentation of these consolidated
financial statements in accordance with accounting principles generally accepted in Japan, andfor designing and operating such internal control as management determines is necessary toenable the preparation and fair presentation of the consolidated financial statements that are freefrom material misstatement, whether due to fraud or error.
Auditor’s Responsibility
Our responsibility is to express an opinion on these consolidated financial statements based on
our audit. We conducted our audit in accordance with auditing standards generally accepted inJapan. Those standards require that we plan and perform the audit to obtain reasonableassurance about whether the consolidated financial statements are free from material
misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the consolidated financial statements. The procedures selected depend on theauditor’s judgment, including the assessment of the risks of material misstatement of theconsolidated financial statements, whether due to fraud or error. The purpose of an audit of theconsolidated financial statements is not to express an opinion on the effectiveness of the entity’s
internal control, but in making these risk assessments the auditor considers internal controls
relevant to the entity’s preparation and fair presentation of the consolidated financial statements
in order to design audit procedures that are appropriate in the circumstances. An audit also
includes evaluating the appropriateness of accounting policies used and the reasonableness ofaccounting estimates made by management, as well as evaluating the overall presentation of theconsolidated financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide abasis for our audit opinion.
OpinionIn our opinion, the consolidated financial statements referred to above present fairly, in allmaterial respects, the consolidated financial position of Asanuma Corporation and consolidated
subsidiaries as at March 31, 2013, and their consolidated financial performance and cash flows
for the year then ended in conformity with accounting principles generally accepted in Japan.
Convenience Translation
We have reviewed the translation of these consolidated financial statements into U.S. dollars,presented for the convenience of readers, and, in our opinion, the accompanying consolidated
financial statements have been properly translated on the basis described in Note 2.

June 27, 2013
Osaka, Japan1

Asanuma Corporation
Consolidated Balance Sheets
March 31, 2013 and 2012

Millions of yen
2012
2013
AssetsCurrent assets:
Cash and cash deposits (Notes 10 and 18)
Receivables:
Notes receivable (Notes 7 and 18)
Accounts receivable on completed construction
contracts (Note 18)
Other accounts receivable
Allowance for doubtful accounts¥ 28,905¥

28,530Thousands of
U.S. dollars(Note 2)
2013$

307,336

1,806

4,259

19,20345,897
3,766(336)
51,13357,8172,004(272)
63,808488,006
40,042(3,573)543,678

6,851
625
43
7,519

9,822
804
45
10,671

72,844
6,646
457
79,947

Deferred income taxes (Note 11)
Other current assets
Total current assets

1
968
88,526

1
294
103,304

11
10,293
941,265

Property, plant and equipment, at cost:
Land (Notes 8 and 10)
Buildings and structures (Notes 8 and 10)
Machinery, equipment and vehicles
Tools, furniture and fixtures
Leased assets
Less accumulated depreciation
Construction in progress
Property, plant and equipment, net

5,267
10,680870
1,063
3(8,378)
72
9,577

6,594
14,549
1,112
1,214
57
(11,479)–
12,04756,002
113,557
9,250
11,302
32(89,080)766
101,829

6,535

5,955

69,484

86
366
444
2,758
(1,182)
9,007

81
426
423
2,800
(874)
8,811

914
3,892
4,721
29,325(12,568)
95,768¥ 107,110¥ 124,162$ 1,138,862

Inventories:
Cost of uncompleted construction contracts
Real estate held for sale
Raw materials and supplies

Investments and other assets:
Investments in securities (Notes 9, 10 and 18)
Investments in an unconsolidated subsidiary andaffiliates (Note 18)
Long-term loans receivable (Note 10)
Intangible assets
Other assets
Allowance for doubtful accounts
Total investments and other assets

Total assets

2Millions of yen
2012
2013
Liabilities
Current liabilities:
Short-term bank loans (Notes 10 and 18)
Current portion of long-term debt (Notes 10 and 18)
Payables (Note 18):
Notes payable (Note 7)
Accounts payable on construction contracts
Other accounts payable
Advances received on uncompleted construction
contracts
Deposits received
Accrued expenses
Consumption taxes on advances received
Accrued income taxes (Note 11)
Consumption taxes payable
Deferred income taxes (Note 11)
Provision for compensation for completed
construction
Provision for bonuses
Provision for loss on construction contracts
Other current liabilities
Total current liabilities
Long-term liabilities:
Long-term debt (Notes 10 and 18)
Accrued retirement benefits for employees(Note 12)Deferred income taxes (Note 11)
Other long-term liabilities
Total long-term liabilities
Total liabilities
Net assets
Shareholders’ equity (Note 13):
Common stock:
Authorized – 293,565,000 shares
Issued– 77,386,293 shares in 2013 and 2012
Capital surplus
Retained earnings (Deficit)
Less treasury stock, at cost
Total shareholders’ equity
Accumulated other comprehensive income:Net unrealized holding gain on securities (Note 9)
Total accumulated other comprehensive income
Minority interests
Total net assets
Total liabilities and net assets

Thousands of
U.S. dollars(Note 2)2013

¥ 20,701
1,695¥ 22,514
1,314$

220,106
18,022

5,961
22,6358,580
37,176

5,752
30,16315,363
51,27863,381
240,670
91,228395,279

10,908
1,436
2,390
1,795
102
219
7

9,040
2,494
1,698
1,629
178
1,277
11

115,981
15,26825,412
19,086
1,085
2,329
74

826
－
1,623
3
78,881

778
6
2,271
15
94,503

8,783－
17,25731
838,713

12,950

10,208

137,693

3,703
1,508
1,395
19,55698,437

4,112
1,280
2,743
18,343112,846

39,373
16,034
14,832
207,932
1,046,645

8,419
970
(2,080)
(136)
7,173

8,419
4,641
(2,331)(136)
10,59389,516
10,314(22,116)(1,446)76,268

1,429
1,429
71
8,673
¥ 107,110

672
672
51
11,316¥ 124,162

15,194
15,194755
92,217$ 1,138,862

See accompanying notes to consolidated financial statements.
3

Asanuma Corporation
Consolidated Statements of Operations
Years ended March 31, 2013 and 2012

Millions of yen
2012
2013
Net sales (Note 22):
Completed construction contracts
Other¥ 118,978
2,215
121,193¥ 137,161
3,301
140,462$ 1,265,051
23,551
1,288,602

117,082
1,899
118,981

138,4732,708
141,181

1,244,892
20,191
1,265,083

1,896
316
2,212

(1,312)593(719)

20,1593,360
23,5196,065(3,853)

6,505(7,224)64,487(40,968)

323
56
(685)
(34)
846
(240)
(236)
213
472
－
－
(330)
(3,468)

396
0
(654)
(25)
230
－
(259)
–
–
(21)
(825)
(83)
(8,465)

3,434
595(7,283)(361)
8,995(2,552)(2,509)
2,265
5,019
－
－
(3,509)(36,874)

142
(210)
(68)
(3,400)20(3,420)

162
(147)
15
(8,480)16(8,496)

1,510(2,233)(723)(36,151)213(36,364)

Cost of sales (Note 14):Completed construction contracts
Other
Gross profit:
Completed construction contracts
Other
Selling, general and administrative
expenses (Note 15)
Operating loss (Note 22)
Other income (expenses):
Interest and dividends income
Foreign exchange gain, net
Interest expenses
Guarantee fees
Gain on sales of property, plant and equipment, net
Special retirement benefits
Loss on impairment of fixed assets (Notes 8 and 22)
Gain on sales of investments in securities
Gain on sales of investments in a subsidiary
Provision of allowance for doubtful accounts
Loss on construction contracts
Other, net
Loss before income taxes and minority interests
Income taxes (Note 11):
Current
Deferred
Loss before minority interests
Minority interests
Net loss

Thousands of
U.S. dollars(Note 2)
2013

¥

¥

$

See accompanying notes to consolidated financial statements.
4

Asanuma Corporation
Consolidated Statements of Comprehensive Loss
Years ended March 31, 2013 and 2012

Loss before minority interests
Other comprehensive income (Note 16):
Net unrealized holding gain on securities
Total other comprehensive income
Comprehensive loss
Comprehensive (loss) gain attributable to:Shareholders of the Company
Minority interests

Millions of yen
2012
2013
¥ (3,400)¥ (8,480)

Thousands of
U.S. dollars(Note 2)2013
$ (36,151)

757
¥757
¥ (2,643)

204¥204¥ (8,276)

8,049
8,049
$ (28,102)¥ (2,662)
19¥ (8,292)
16$ (28,304)
202

See accompanying notes to consolidated financial statements.
5

Asanuma Corporation
Consolidated Statements of Changes in Net Assets
Years ended March 31, 2013 and 2012

Shareholders’ equity

Balance at April 1, 2011
Net loss for the year
Cash dividends
Sales of treasury stock
Increase in treasury stock
Net change in items other thanshareholders’ equity
Balance at April 1, 2012
Net loss for the year
Deficit disposition
Sales of treasury stock
Increase in treasury stock
Transfers of loss on sales oftreasury stock
Net change in items other thanshareholders’ equity
Balance at March 31, 2013

Millions of yen
Accumulated
othercomprehensive
incomeCommonstock

CapitalsurplusRetainedearnings(Deficit)

Treasurystock, atcost

Net unrealized
holding gain
on securities

Minority
interests

Total net
assets¥ 8,419––––¥ 4,641 ¥ 6,317–(8,496)
–
(152)
(0)
–
–
–

¥ (136)
–
–
1
(1)

¥ 468
–
–
–
–

¥ 35
–
–
–
–

¥ 19,744(8,496)
(152)
1
(1)

–

–

204

16

220

¥ 4,641 ¥ (2,331)–(3,420)(3,671)
3,671
(0)
–
–
–

¥ (136)
–
–
0
(0)

¥ 672
–
–
–
–

¥ 51
–
–
–
–

¥ 11,316(3,420)–0(0)–¥ 8,419
–
–
–
–

–

–
–
¥ 8,419

0

(0)

–

–

–

–

–
970

–
¥ (2,080)–¥ (136)757¥1,429

20
¥ 71

777
¥ 8,673

Net unrealized
holding gain
on securities

Minority
interests

Total net
assets$ 7,145
–
–
–
–

$ 542
–
–
–
–

$ 120,319(36,364)
–
0
(0)

–

–

–

–

–
–
–
$ 10,314 $ (22,116) $ (1,446)

8,049$15,194

213
$ 755

8,262
$ 92,217¥

Thousands of U.S. dollars (Note 2)
Accumulated
othercomprehensive
incomeShareholders’ equity

Balance at April 1, 2012
Net loss for the year
Deficit disposition
Sales of treasury stock
Increase in treasury stock
Transfers of loss on sales oftreasury stock
Net change in items otherthan shareholders’ equity
Balance at March 31, 2013

Retainedearnings(Deficit)

Treasurystock, atcost

Commonstock

Capitalsurplus$ 89,516––––$49,346 $ (24,784) $ (1,446)–(36,364)–(39,032)
39,032
–
(0)
–
0
–
–
(0)

–
–
$ 89,516

0(0)

See accompanying notes to consolidated financial statements.
6

Asanuma Corporation
Consolidated Statements of Cash Flows
Years ended March 31, 2013 and 2012

Millions of yen
2012
2013
Cash flows from operating activities:
Loss before income taxes and minority interests
Adjustments for:
Depreciation and amortization
Loss on impairment of fixed assets
Increase in allowance for doubtful accounts
Decrease in provision for bonuses(Decrease) increase in provision for loss on
construction contracts(Decrease) increase in accrued retirement benefits for
employees
Interest and dividends income
Interest expenses
Foreign exchange gain, net(Gain) loss on sales of investments in securities, net
Gain on sales of investments in a subsidiary
Gain on sales of property, plant and equipment, net
Decrease (increase) in notes and accounts receivable oncompleted construction contracts
Decrease in inventories(Decrease) increase in notes and accounts payable on
construction contracts(Decrease) increase in other accounts payable
Increase in advances received on
uncompleted construction contracts
Other, net
SubtotalInterest and dividends received
Interest paid
Income taxes paid
Net cash (used in) provided by operating activities
Cash flows from investing activities:
Purchases of property, plant and equipment
Proceeds from sales of property, plant andequipment
Purchases of intangible assets
Purchases of investments in securities
Proceeds from sales of investments in securities
Loans receivable madeCollection of loans receivable
Proceeds from sales of a subsidiary’s stock resulting inchange in scope of consolidation (Note 21)
Other, net
Net cash provided by investing activities

Thousands of
U.S. dollars(Note 2)2013

¥ (3,468)¥ (8,465)$ (36,874)

499
236
372
(6)

572
259
150
(317)

5,306
2,509
3,955
(64)

(648)

1,356

(6,890)

(408)
(323)
685
(56)
(209)
(472)
(846)

492
(396)
654
(0)
0
–
(230)

(4,338)(3,434)
7,283(595)(2,222)(5,019)(8,995)

14,360
3,036

(417)
3,150

152,685
32,281(7,273)(6,800)3,588
262(77,331)(72,302)

1,868(4,119)(3,572)
318
(687)
(226)
(4,167)

1,547
2,315
4,520
393
(693)
(180)
4,040

19,862(43,797)(37,980)
3,381(7,304)(2,403)(44,306)

(247)

(143)

(2,626)

2,102
(137)
(3)
754
(17)
82

276
(109)
(8)
3
(30)
131

22,350(1,457)
(32)
8,017
(181)
872

628
27
¥ 3,189

–
35
155

6,677
287
33,907¥$7Asanuma Corporation
Consolidated Statements of Cash Flows (continued)
Years ended March 31, 2013 and 2012

Millions of yen
2012
2013
Cash flows from financing activities:
Decrease in short-term bank loans, net
Proceeds from long-term debt
Repayment of long-term debt
Cash dividends paid
Repayments of lease obligations
Other, net
Net cash provided by (used in) financing activities
Effect of exchange rate changes on cash and cash
equivalents
Net increase in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year

Thousands of
U.S. dollars(Note 2)2013

¥ (1,432)
7,156(4,415)
(0)
(12)
(0)
1,297

¥ (3,484)
3,615(1,314)
(152)
(13)
(1)
(1,349)$ (15,226)
76,087(46,943)
(0)
(127)
(0)
13,791

56
375
28,530¥ 28,905

02,846
25,684¥ 28,530

595
3,987
303,349$ 307,336

See accompanying notes to consolidated financial statements.
8

Asanuma Corporation
Notes to Consolidated Financial Statements
Years ended March 31, 2013 and 2012

1.

Basis of Preparation of Consolidated Financial Statements

The accompanying consolidated financial statements of Asanuma Corporation (the“Company”) and consolidated subsidiaries are prepared on the basis of accounting
principles generally accepted in Japan, which are different in certain respects as to theapplication and disclosure requirements of International Financial Reporting Standards,
and have been compiled from the consolidated financial statements prepared by theCompany as required by the Financial Instruments and Exchange Act of Japan.
In preparing the accompanying consolidated financial statements, certain reclassifications
and rearrangements have been made to the consolidated financial statements issued
domestically in order to present them in a format which is more familiar to readers outside
Japan.
Certain reclassifications of previously reported amounts have been made to conform theconsolidated financial statements for the year ended March 31, 2012 to the 2013presentation. Such reclassifications had no effect on consolidated net income or net
assets.

2.

U.S. Dollar Amounts

The accompanying consolidated financial statements are stated in yen, the currency of thecountry in which the Company and its consolidated subsidiaries are incorporated andoperate. The translation of yen amounts into U.S. dollar amounts is included solely forthe convenience of readers outside Japan and has been made at ¥94.05 = U.S.$1.00, theexchange rate prevailing on March 31, 2013. This translation should not be construed asa representation that yen can be converted into U.S. dollars at the above or any other rate.

3.

Principles of Consolidation

At March 31, 2013 and 2012, the Company had 5 and 6 subsidiaries, respectively. The
consolidated financial statements for the years ended March 31, 2013 and 2012 include
the accounts of the Company and its 4 and 5 subsidiaries, respectively.
The Company applied the equity method to its investments in 3 affiliates, at March 31,
2013 and 2012 for the purpose of consolidated financial statements for the years thenended.
The accounts of the remaining subsidiary were not consolidated nor the equity method
applied because its assets, retained earnings, net sales and net income in the aggregate
were not material to the consolidated financial statements.

9Asanuma Corporation
Notes to Consolidated Financial Statements (continued)

4.

Summary of Significant Accounting Policies(a) Cash and cash equivalents
Cash and cash equivalents consist of cash on hand, deposits with banks withdrawable
on demand, and short-term investments which are readily convertible to cash subject
to an insignificant risk of any changes in their value and which were purchased withan original maturity of three months or less.
(b) Investments in securities
Investments in securities are classified into two categories: held-to-maturity debt
securities or other securities. Held-to-maturity debt securities are stated at amortizedcost. Marketable securities classified as other securities are carried at fair value withany changes in unrealized holding gain or loss, net of the applicable income taxes,
reported as a separate component of accumulated other comprehensive income.
Non-marketable securities classified as other securities are carried at cost determinedby the moving average method.
(c) Allowance for doubtful accounts
The Company and its consolidated subsidiaries provide an allowance for doubtful
accounts at an amount calculated based on their historical experience of bad debts on
ordinary receivables plus an additional estimate of probable specific bad debts from
customers experiencing financial difficulties.
(d) Inventories
Cost of uncompleted construction contracts are stated at cost determined on an
individual project basis. Real estate held for sale is stated at the lower of cost or net
selling value, cost being determined on an individual project basis. Raw materials
and supplies are stated at the lower of cost or net selling value, cost being determinedby the period average method.
(e) Property, plant and equipment (Other than leased assets)
Property, plant and equipment is stated on the basis of cost. Depreciation is
calculated by the declining-balance method over the estimated useful lives of therespective assets; however, the straight-line method is applied to buildings (except forstructures attached to the buildings) acquired on or after April 1, 1998.

10

Asanuma Corporation
Notes to Consolidated Financial Statements (continued)

4.

Summary of Significant Accounting Policies (continued)(f) Intangible assets (Other than leased assets)
Amortization of intangible assets is calculated by the straight-line method over theestimated useful lives of the respective assets.
Expenditures related to computer software developed for internal use are charged toincome when incurred, except if they are deemed to contribute to the generation ofincome or to future cost savings. Such expenditures are capitalized as intangible
assets and amortized over an estimated useful life of 5 years.
(g) Leases
Leased assets held under finance leases that transfer ownership are depreciated byusing the economic useful lives of leased assets. For finance leases that do nottransfer ownership, depreciation expense is calculated based on the straight-line
method over the leased period of the lease with a residual value of zero. In addition,
finance lease transactions commencing on or before March 31, 2008 other than thosein which the ownership of the leased assets is transferred to the Company or its
consolidated subsidiaries are accounted for in the same manner as operating leases.
(h) Provision for compensation for completed construction
A provision for compensation for completed construction is provided for anticipatedfuture costs arising from warranties on completed construction based on the historical
data on the compensation cost.
(i) Provision for bonuses
A provision for bonuses is provided at the estimated amount of bonuses to be paid asallocated to the current fiscal year.
(j) Provision for loss on construction contracts
A provision for loss on construction contracts is provided for anticipated future losses
on uncompleted construction projects.

11Asanuma Corporation
Notes to Consolidated Financial Statements (continued)

4.

Summary of Significant Accounting Policies (continued)(k) Accrued retirement benefits
Accrued retirement benefits for employees are provided at the retirement benefit
obligation less the fair value of the pension plan assets as adjusted for unrecognizedactuarial gain or loss. The retirement benefit obligation is attributed to each periodby the straight-line method over the estimated average remaining years of service ofthe eligible employees.
Prior service cost is credited or charged to income in the year in which the gain or loss
is recognized.
Actuarial gain or loss is amortized commencing the year following the year in which
the gain or loss is recognized by the straight-line method principally over a ten-year
period, which is shorter than the average remaining years of service of the eligible
employees.
(l) Income taxes
Income taxes are calculated based on taxable income and charged to income on an
accrual basis. Deferred tax assets and liabilities are computed based on thetemporary differences between financial reporting and the tax bases of the assets andliabilities which will result in taxable or deductible amounts in the future. The
calculation of deferred tax assets and liabilities is based on the enacted tax laws.
Valuation allowances are utilized to reduce deferred tax assets to the amount thatmanagement believes is more likely than not to be realized. In assessing the
likelihood of realization, the Company considers all currently available evidence for
future years, both positive and negative, supplemented by information regarding
historical results for each tax jurisdiction.
(m) Hedge accounting
Gain or loss on derivatives positions designated as hedges is deferred until the loss orgain on the respective underlying hedged items is recognized. Interest-rate swaps
which meet certain conditions are accounted for as if the interest rates applied to theswaps had originally applied to the underlying debt.

12

Asanuma Corporation
Notes to Consolidated Financial Statements (continued)

4.

Summary of Significant Accounting Policies (continued)(n) Revenue recognition
The Company recognizes revenue by applying the percentage-of-completion method
for the construction projects for which the outcome of the construction activity isdeemed certain at the end of the reporting period. To estimate the progress of such
construction projects, the Company measures the percentage of completion bycomparing costs incurred to date with the most recent estimate of total costs required
to complete the project (cost to cost basis). For other construction projects where theoutcome cannot be reliably measured, the completed-contract method is applied.
Net sales related to construction contracts accounted for by thepercentage-of-completion method totaled ¥114,150 million ($1,213,716 thousand)and ¥129,174 million for the years ended March 31, 2013 and 2012, respectively.

5.

Accounting Standards Issued but Not Yet Effective(Accounting Standard for Retirement Benefits)･ Accounting Standard for Retirement Benefits (Statement No. 26 issued by AccountingStandards Board of Japan (“ASBJ”) on May 17, 2012)･ Guidance on Accounting Standard for Retirement Benefits (Guidance No. 25 issued
by ASBJ on May 17, 2012)(1) Summary
These accounting standards were amended from the viewpoint of improvements
to financial reporting and international convergence, mainly focusing on how
actuarial gains or losses and prior service costs should be accounted for, howretirement benefit obligations and current service costs should be determined, andenhancement of disclosures.
Under the revised accounting standard, unrecognized actuarial gains or losses andprior service cost shall be recognized within net assets (accumulated othercomprehensive income (loss)), after adjusting for tax effects, and the deficit or
surplus shall be recognized as a liability or asset. In addition, the retirement
benefit obligation can be attributed to each period based on the plan’s benefit
formula or the straight-line method.
(2) Planned date of adoption
The Company will adopt these accounting standards from the end of the fiscal
year ending March 31, 2014.

13

Asanuma Corporation
Notes to Consolidated Financial Statements (continued)

5.

Accounting Standards Issued but Not Yet Effective (continued)(3) Effect of adoption of these accounting standards
The effect of the adoption of these accounting standards is currently underassessment.

6.

Change in Method of Accounting

In accordance with an amendment to the Corporation Tax Law in Japan effective April 1,
2012, the Company and its domestic consolidated subsidiaries have changed theirdepreciation method for property, plant and equipment acquired on or after April 1, 2012,
other than certain buildings, to reflect the methods prescribed in the amended Corporation
Tax Law in Japan. The impact of applying this accounting standard to operating loss andloss before income taxes and minority interests was immaterial for the year ended March
31, 2013.
7.

Notes Receivable and Notes Payable

The balance sheet date for the years ended March 31, 2013 and 2012 fell on a bankholiday. Consequently, notes receivable of ¥282 million ($2,998 thousand) and ¥164
million with due dates of March 31, 2013 and 2012 were included in the balances in the
consolidated balance sheets at March 31, 2013 and 2012, respectively, and were settled on
the next business day. In addition, notes payable of ¥102 million ($1,085 thousand) witha due date of March 31, 2013 were included in the balance in the consolidated balance
sheet at March 31, 2013 and were settled on the next business day.

14

Asanuma Corporation
Notes to Consolidated Financial Statements (continued)

8.

Loss on Impairment of Fixed Assets

Aggregate losses on impairment of fixed assets of ¥236 million ($2,509 thousand) and¥259 million were recorded for the years ended March 31, 2013 and 2012, respectively.
Losses on impairment related to land in the amount of ¥113 million ($1,201 thousand) andbuildings in the amount of ¥123 million ($1,308 thousand) for the year ended March 31,
2013 and land in the amount of ¥144 million and buildings in the amount of ¥115 million
for the year ended March 31, 2012 are outlined as follows:

Location
Hokkaido
Prefecture
Nara
Prefecture
and other
Mie
Prefecture

Location
Ishikawa
Prefecture
and other
Chiba
Prefecture
and otherMain useClass

Millions of yen
2013

Thousands of
U.S. dollars
2013

Leasing

Buildings
and land¥ 217$ 2,307

Idle property

Buildings
and land19

202

Investment

Land

0
¥ 236

0
$ 2,509

Main useClass

Leasing

Buildings
and landIdle property

Buildings
and landMillions of yen
2012
¥ 67
192
¥ 259

The Company and its consolidated subsidiaries, in principle, group their fixed assets for
operating purposes at each office but group their fixed assets for leasing purposes and idle
properties individually. The affiliates group their fixed assets at each company. Due toa decline in market price of real estate during the years ended March 31, 2013 and 2012,
the Company and its consolidated subsidiaries have reduced the carrying value of assets
outlined above to their respective estimated recoverable amount.
The estimated recoverable amounts of the fixed assets for leasing purposes and idle
properties have been measured at their estimated net selling prices based on the figures
presented by government authorities and others.

15

Asanuma Corporation
Notes to Consolidated Financial Statements (continued)

9.

Investments in Securities

At March 31, 2013 and 2012, marketable securities classified as held-to-maturity debt
securities were as follows:
Millions of yen
Carryingvalue
Held-to-maturity debt
securities whose
estimated fair value
exceeds their carrying
value:
Government andmunicipal bonds

2013
Estimated Unrealized
fair value
gain

¥ 30
¥ 30

¥ 30
¥ 30

Carrying
value

2012
Estimated
fair value

Unrealized
gain

¥ 30
¥ 30

¥ 31
¥ 31

¥1
¥1

¥ 0
¥ 0

Thousands of U.S. dollars
2013
Carrying Estimated Unrealizedvalue
fair value
gain
Held-to-maturity debt
securities whose
estimated fair value
exceeds their carrying
value:
Government andmunicipal bonds

$ 319
$ 319

$ 319
$ 319

$ 0
$ 0

At March 31, 2013 and 2012, marketable securities classified as other securities were as
follows:
Millions of yen

Other securities whosecarrying value exceeds
their acquisition costs:
Equity securities
Other securities whosecarrying value does notexceed their acquisition
costs:
Equity securities

2012
Carrying
value

Unrealized
gain (loss)¥ 2,944¥ 4,082¥ 1,138

1,185¥ 4,129

1,031¥ 5,113

(154)
¥ 984

Acquisition
costs

2013
Carrying
value

Unrealized
gain (loss)

Acquisitioncosts¥ 3,253¥ 5,403¥ 2,150346¥ 3,599321¥ 5,724(25)¥ 2,125

16

Asanuma Corporation
Notes to Consolidated Financial Statements (continued)

9.

Investments in Securities (continued)
Thousands of U.S. dollars
2013
Acquisition
Carrying
Unrealized
costs
value
gain (loss)

Other securities whosecarrying value exceeds
their acquisition costs:
Equity securities
Other securities whosecarrying value does notexceed their acquisition
costs:
Equity securities$ 34,588$ 57,448$ 22,860

3,679$ 38,267

3,413$ 60,861(266）$ 22,594

Refer to Note 18 for the redemption schedule at March 31, 2013 for held-to-maturity debt
securities.
For the years ended March 31, 2013 and 2012, the Company has recognized losses on
impairment of equity securities classified as other securities of ¥18 million ($191
thousand) and ¥35 million, respectively.
The Company recognizes loss on impairment of marketable securities classified as othersecurities if the market value of a security at year end declines by more than 30%
compared with its carrying value.
Proceeds from and realized gain (loss) on sales of other securities for the years ended
March 31, 2013 and 2012 are summarized as follows:

Millions of yen
2012
2013
Proceeds
Realized gain
Realized loss

¥ 754
213
(4)

¥ 3
–
(0)

Thousands of
U.S. dollars
2013$ 8,017
2,265
(43)

17

Asanuma Corporation
Notes to Consolidated Financial Statements (continued)

10. Short-Term Bank Loans and Long-Term Debt
Short-term bank loans from banks had average interest rates of 1.97% at March 31, 2013
and 1.67% at March 31, 2012.
Long-term debt at March 31, 2013 and 2012 is summarized as follows:
Thousands of
U.S. dollars
2013

Millions of yen
2013
2012
Unsecured loans from banks, payable inyen, at rates ranging from 2.44% to 3.56%
Secured loans from insurance companies,
payable in yen at rates ranging from
1.53% to 2.56%
Total
Less current portion included in current
liabilities

¥

82

¥

87

$

872

14,563
14,645

11,435
11,522

154,843
155,715(1,695)¥ 12,950(1,314)¥10,208(18,022)$ 137,693

The aggregate annual maturities of long-term debt subsequent to March 31, 2013 aresummarized as follows:Year ending March 31,
2014
2015
2016
2017 and thereafter

Millions of yen¥ 1,695
5,028
1,710
6,212
¥ 14,645

Thousands of
U.S. dollars$ 18,022
53,461
18,182
66,050$ 155,715

Assets pledged at March 31, 2013 as collateral for loans of the Company are summarized
as follows:
Thousands ofMillions of yen
U.S. dollars
Cash and cash deposits¥438$ 4,657
Buildings and structures
3,349
35,609Land
4,013
42,66951,791
4,871
Investments in securities¥ 12,671$ 134,726
All assets of the consolidated subsidiaries engaged in the PFI business were pledged ascollateral for their loans under the project finance agreements. Assets pledged at March
31, 2013 amounted to ¥12,184 million ($129,548 thousand) as collateral for loans of¥11,226 million ($119,362 thousand).

18

Asanuma Corporation
Notes to Consolidated Financial Statements (continued)

10. Short-Term Bank Loans and Long-Term Debt (continued)
Assets pledged at March 31, 2013 as collateral for loans of affiliates engaged in a PFI
business are summarized as follows:

Investments in securities
Long-term loans receivable

Millions of yen
¥ 63
136
¥ 199

Thousands of
U.S. dollars
$ 670
1,446
$ 2,116

In order to achieve more efficient financing, the Company has concluded line-of-credit
agreements with certain financial institutions. The status of these line of credit at March
31, 2013 was as follows:

Lines of credit
Credit utilized
Available credit

Millions of yen
2013¥ 5,000–¥ 5,000

Thousands of
U.S. dollars
2013$ 53,163–$ 53,163

11. Income Taxes
Income taxes applicable to the Company and its consolidated subsidiaries comprise
corporation, inhabitants’ and enterprise taxes which, in the aggregate, resulted instatutory tax rates of approximately 38.3% and 40.8% for the years ended March 31, 2013
and 2012, respectively.
A reconciliation of the statutory tax rates and the effective tax rates for the years ended
March 31, 2013 and 2012 as a percentage of loss before income taxes and minority
interests is summarized as follows:

Statutory tax rates
Permanently non-tax-deductible expenses
Permanently non-taxable income
Per capita portion of inhabitants’ taxes
Valuation allowance
Deferred tax effect of change in statutory tax rates
Unrecognized deferred income taxes relating toexcess of cost over equity in net assets ofsubsidiaries and other
Other
Effective tax rates

2013
38.3 %
(1.9)
0.5
(3.8)

2012
40.8 %
(1.0)
0.2
(1.6)

(31.5)–(39.6)
1.6

0.1
0.3
2.0 %

0.1
(0.6)
(0.2) %
19

Asanuma Corporation
Notes to Consolidated Financial Statements (continued)

11. Income Taxes (continued)
The significant components of deferred tax assets and liabilities of the Company and its
consolidated subsidiaries at March 31, 2013 and 2012 are summarized as follows:

Millions of yen
2012
2013
Deferred tax assets:
Allowance for doubtful accounts
Provision for bonuses
Provision for compensation forcompleted construction
Inventories
Provision for loss on construction
contracts
Accrued retirement benefits for
employees
Assets transferred to defined
contribution pension plans
Loss on impairment of fixed assets
Loss on revaluation of investments
in securities
Tax loss carryforwards
Unrealized profit on intercompany
transactions
Other
Gross deferred tax assets
Less valuation allowance
Total deferred tax assets
Deferred tax liabilities:
Unrealized holding gain on
securities
Deferred capital gains on property
Other
Total deferred tax liabilities
Net deferred tax liabilities

¥

549
－

¥

622
0

Thousands of
U.S. dollars
2013
$

5,837
－

316
93

298
59

3,360
989

621

869

6,603

1,321

1,444

14,046

574
1,327

838
1,668

6,103
14,110

112
4,339

136
2,408

1,191
46,135－
1,024
10,276(10,275)
1

49
957
9,348
(9,297)51－
10,887109,261(109,250)
11

(699)
(814)
(2)
(1,515)¥ (1,514)(312)(1,025)(4)(1,341)¥ (1,290)(7,432)(8,655)(21)(16,108)$ (16,097)

20

Asanuma Corporation
Notes to Consolidated Financial Statements (continued)

12. Retirement Benefits
The Company and its certain consolidated subsidiary have defined benefit pension planscovering substantially all employees who are entitled to lump-sum or pension payments,
the amounts of which are determined by reference to their basic rates of pay, length ofservice, and the conditions under which termination occurs. In addition to the retirement
benefit plans described above, the Company and its certain consolidated subsidiary pay
additional retirement benefits under certain conditions. In addition, the Company
transferred a certain portion of defined benefit pension plans to a defined contribution
pension plan on October 1, 2010.
The following table sets forth the funded and accrued status of the plans and the amounts
recognized in the accompanying consolidated balance sheets at March 31, 2013 and 2012
for the Company’s and its consolidated subsidiaries’ defined benefit pension plans:

Retirement benefit obligation
Plan assets at fair value
Unfunded retirement benefit obligation
Unrecognized actuarial loss
Accrued retirement benefits for employees

Millions of yen
2012
2013
¥ (12,593)¥ (12,875)
6,722
6,727
(5,866)(6,153)
2,041
2,163¥ (4,112)¥ (3,703)

Thousands of
U.S. dollars
2013$ (133,897)
71,526(62,371)
22,998$ (39,373)

The components of retirement benefit expenses for the years ended March 31, 2013 and2012 are outlined as follows:

Service cost
Interest cost
Expected return on plan assets
Amortization of unrecognized actuarial loss
Contributions to defined contribution pension plan
Retirement benefit expenses

Millions of yen
2012
2013
¥ 431
¥ 391
139
266
(134)
(143)
427
580
198
192
¥ 1,292¥ 1,055

Thousands of
U.S. dollars
2013$ 4,583
1,478(1,425)4,540
2,041$ 11,217

In addition, the Company recorded special retirement benefits of ¥240 million ($2,552
thousand) in the accompanying consolidated statements of operations for the year ended
March 31, 2013, which includes ¥198 million ($2,105 thousand) of early retirement
premium expenses.

21

Asanuma Corporation
Notes to Consolidated Financial Statements (continued)

12. Retirement Benefits (continued)
The assumptions used in accounting for the defined benefit pension plans for the years
ended March 31, 2013 and 2012 were as follows:

Discount rates
Expected rate of return on plan assets

2013

2012

1.0%
2.0%

2.0%
2.0%

As a result of reviewing the appropriateness of discount rate, it was determined that the
movement of the discount rate has a significant impact on the projected benefit obligation.
Therefore, the discount rate as at March 31, 2013 has been changed to 1.0%, while thediscount rate as at April 1, 2012 was 2.0%.

13. Shareholders’ Equity
The Companies Act (the “Act”) provides that an amount equal to 10% of the amount to be
disbursed as distributions of capital surplus (other than the capital reserve) and retained
earnings (other than the legal reserve) be transferred to the capital reserve and the legal
reserve, respectively, until the sum of the capital reserve and the legal reserve equals 25%of the capital stock account. Such distributions can be made at any time by resolution of
the shareholders, or by the Board of Directors if certain conditions are met.
The Company’s legal reserve included in retained earnings at March 31, 2012 amounted to¥2,104 million.
Under the Act, upon the issuance and sale of new shares of common stock, the entire
amount of the proceeds is required to be accounted for as common stock, although a
company may, by resolution of the Board of Directors, account for an amount notexceeding one-half of the proceeds of the sale of new shares as additional paid-in capital
included in capital surplus.

22

Asanuma Corporation
Notes to Consolidated Financial Statements (continued)

13. Shareholders’ Equity (continued)
Movements in shares of common stock in issue and treasury stock during the years ended
March 31, 2013 and 2012 are summarized as follows:

April 1, 2012
Shares ofcommon stockin issue
Treasury stock

77,386,293
1,276,525

April 1, 2011
Shares ofcommon stockin issue
Treasury stock

77,386,293
1,270,197

Number of shares
2013
Increase
Decrease

–
6,219

–
2,841

Number of shares
2012
Increase
Decrease

–
8,867

–
2,539

March 31, 2013

77,386,293
1,279,903

March 31, 2012

77,386,293
1,276,525

The increases of treasury stock were due to purchases of shares of less than one voting
unit and the decreases of treasury stock were due to sales of shares at requests ofshareholders owning less than one voting unit for the years ended March 31, 2013 and2012.

14. Provision for Loss on Construction Contracts
Provision for loss on construction contracts included in cost of sales for the years ended
March 31, 2013 and 2012 amounted to ¥1,623 million ($17,257 thousand) and ¥2,271
million, respectively.

23

Asanuma Corporation
Notes to Consolidated Financial Statements (continued)

15. Research and Development Costs
Research and development costs included in selling, general and administrative expenses
for the years ended March 31, 2013 and 2012 amounted to ¥126 million ($1,340 thousand)and ¥137 million, respectively.

16. Other Comprehensive Income
The following table presents reclassification adjustments and tax effects allocated tocomponents of other comprehensive income for the years ended March 31, 2013 and2012:

Millions of yen
2012
2013
Unrealized holding gain on investments
in securities:
Gains arising during the year
Reclassification adjustments for (gain)
loss realized in the statement ofoperations
Before tax effectTax effectUnrealized holding gain on investments
in securities, net
Total other comprehensive income

Thousands of
U.S. dollars

2013¥ 1,345¥ 191$ 14,301

(204)
1,141
(384)

33
224
(20)

(2,169)12,132(4,083)

757
757

204
¥ 204

8,049
$ 8,049¥

24

Asanuma Corporation
Notes to Consolidated Financial Statements (continued)

17. Leases
Finance lease transactions commencing on or before March 31, 2008 other than those inwhich the ownership of the leased assets is transferred to the Company and its
consolidated subsidiaries are accounted for in the same manner as operating leases.
Future minimum lease payments subsequent to March 31, 2013 for financial leaseaccounted for as operating lease are summarized as follow:

Year ending March 31,
20142015 and thereafter

Millions of yen

Thousands of U.S.
dollars¥ 119
119$ 1,265
1,265

The following pro forma amounts represent the acquisition costs, accumulated
depreciation and net book value of the leased property as of March 31, 2012, which would
have been reflected in the accompanying consolidated balance sheets if finance leaseaccounting had been applied to the finance leases under which the Company and its
consolidated subsidiaries are lessees and which are currently accounted for as operatingleases:Tools, furniture and fixtures

Acquisition
costs

Millions of yen
2012
Accumulated
depreciation

Net book
value

¥ 18

¥ 17

¥1

Lease payments related to finance leases accounted for as operating leases, depreciationand interest expense, which have not been reflected in the accompanying consolidated
statements of operations for the year ended March 31, 2012, was as follows:
Millions of yen
2012
Lease payments
Depreciation
Interest expense

¥4
4
0

25

Asanuma Corporation
Notes to Consolidated Financial Statements (continued)

18. Financial Instruments(1) Policy for financial instruments
The Company and its consolidated subsidiaries manage their funds by investing onlyin short-term deposits, and primarily raise funds by borrowings from banks. The
purpose of entering into derivative transactions is to mitigate fluctuation risk related
to interest rates with respect to borrowings from banks, and derivative transactions are
not carried out for speculative purposes.
(2) Types of financial instruments, related risk and risk management for financial
instruments
Notes and accounts receivable on completed construction contracts are subject to thecredit risk of customers. Regarding this risk, the Company and its consolidated
subsidiaries monitor due dates and outstanding balances by individual customer, andthe credit worthiness of their main customers regularly.
For investments in securities, the Company and consolidated subsidiaries review thefair values of such financial instruments every quarter.
Notes and accounts payable on construction contracts are operating obligations andmostly are payable within one year.
Short-term bank loans and long-term debt are mainly utilized for business operations.
Long-term debt with variable interest rates is exposed to interest rate fluctuation risk.
However, to reduce such risk and fix interest expense for a certain long-term debt
bearing interest at variable rates, the Company utilizes interest rate swaps as ahedging instrument. In addition, the Company has established internal policies
which include procedures and authorization processes governing derivatives andcomplies fully with these guidelines.
(3) Supplementary explanation of the market value of financial instruments
The market value of financial instruments is based on the market price, and when no
market price exists, a rationally calculated amount is used. These calculations
include variable factors, so the resulting amount may change if different underlying
assumptions are applied.

26

Asanuma Corporation
Notes to Consolidated Financial Statements (continued)

18. Financial Instruments (continued)
The carrying value, estimated fair value and resulting differences as of March 31, 2013
and 2012 are as follows. Financial instruments for which fair value is deemed extremely
difficult to determine are not included.
Millions of yen
2013

Cash and cash deposits
Notes and accounts receivable oncompleted construction contracts
Investments in securities
Total assets
Short-term bank loans
Notes and accounts payable on
construction contracts
Other accounts payable
Long-term debt
Total liabilities

Carrying value¥ 28,905

Estimated fairvalue
¥ 28,905

Difference¥ –47,702
5,754¥ 82,361

48,3605,754¥ 83,019

658
0
¥ 658

¥ 22,396¥ 22,396¥

28,596
8,580
12,950¥ 72,522

28,596
8,580
13,282¥ 72,854

–
–
332
¥332

–

Millions of yen
2012

Cash and cash deposits
Notes and accounts receivable oncompleted construction contracts
Investments in securities
Total assets
Short-term bank loans
Notes and accounts payable on
construction contracts
Other accounts payable
Long-term debt
Total liabilities

Carrying value¥ 28,530

Estimated fairvalue
¥ 28,530

Difference¥ –62,076
5,142¥ 95,748

62,4695,143¥ 96,142

393
1
¥ 394

¥ 23,828¥ 23,828¥ –35,915
15,363
10,208¥ 85,314

35,915
15,363
10,293¥ 85,399

–
–
85
¥ 85

27

Asanuma Corporation
Notes to Consolidated Financial Statements (continued)

18. Financial Instruments (continued)
Thousands of U.S. dollars
2013
Carrying value

Estimated fairvalue

Cash and cash deposits
Notes and accounts receivable oncompleted construction contracts
Investments in securities
Total assets$

307,336$

307,336$$

507,199
61,180875,715$

514,195
61,180882,711

6,996
0$ 6,996

Short-term bank loans
Notes and accounts payable on
construction contracts
Other accounts payable
Long-term debt
Total liabilities$

238,128$

238,128$$

304,051
91,228
137,693771,100$

304,051
91,228141,223774,630––
3,530$ 3,530

Difference––

Methods to determine the estimated fair value of financial instruments and other mattersrelated to securities and derivative transactions:
Cash and cash deposits
Since these items are settled in a short period of time, their carrying values approximate
the fair value.
Notes and accounts receivable on completed construction contracts
For the valuation of notes and accounts receivable on completed construction contracts,
the Company and its consolidated subsidiaries use the present value based on assumptions
such as the collection term of each receivable and discount rates reflected in each credit
risk.
Investments in securities
The estimated fair values of equity securities are based on quoted market prices. The
estimated fair value of debt securities are based on the price provided by the financial
institutions making markets in these securities.
Notes and accounts payable on construction contracts, other accounts payable andshort-term bank loans
Since these items are settled in a short period of time, their carrying values approximate
the fair value.

28

Asanuma Corporation
Notes to Consolidated Financial Statements (continued)

18. Financial Instruments (continued)
Long-term debt
The estimated fair values of long-term debt are based on present value of the total amountincluding principal and interest, discounted by the expected interest rate in the case of new
borrowings of the same loan as in the amount of the balance as of the end of the period.
Floating interest rates for long-term loans were hedged by interest-rate swap agreements
and accounted for as loans with fixed interest rates. The estimated fair value of thoselong-term loans is reasonably based on the present value of the total of principals, interests
and net cash flows of swap agreements discounted by the interest rates, estimatedreasonably, applicable to loans made under similar circumstances.
Derivatives transactions
Refer to the Note 19 for fair value information at March 31, 2013 of derivativetransactions.
Financial instruments for which it is extremely difficult to determine the fair value:
Unlisted equity securities of ¥867 million ($9,218 thousand) and ¥894 million reflected in
the consolidated balance sheets at March 31, 2013 and 2012, respectively, are basedneither on market value nor estimated future cash flow, and it is difficult to determine theestimated fair value. Therefore, they are not included in the above table.
The redemption schedule for receivables and marketable securities with maturity dates at
March 31, 2013 is summarized as follows:

Cash deposits
Notes and accounts receivable oncompleted construction contracts
Investments in securities
Held-to-maturity debt securities
Total assets

Cash deposits
Notes and accounts receivable oncompleted construction contracts
Investments in securities
Held-to-maturity debt securities
Total assets

Within 1 year
¥ 28,899

Millions of yen
Over 1 year
within 5 years¥–

Over 5 years¥–

38,042

5,569

4,091

30
¥ 66,971–¥ 5,569–¥ 4,091

Thousands of U.S. dollars
Over 1 year
Over 5 years
Within 1 year
within 5 years$ 307,273
$
–
$
–

$

404,487

59,21343,499319
712,079–$ 59,213–$ 43,499

29

Asanuma Corporation
Notes to Consolidated Financial Statements (continued)

18. Financial Instruments (continued)
The redemption schedule for short term bank loans, long-term and lease obligations debt
at March 31, 2013.

Within 1
year
Short-term bank loans
Long-term debt
Lease obligations
Total¥ 22,396–1¥ 22,397

Within 1
year
Short-term bank loans
Long-term debt
Lease obligations
Total

Over 1 year
within 2years$ 238,128–11$ 238,139

¥

–
5,028
0
¥ 5,028

Millions of yen
Over 2 year Over 3 year
within 3
within 4
years
years
–
1,710
0
¥ 1,710–1,053
0¥ 1,053

¥

¥

–
4,112
–
¥ 4,112Over 1 year
within 2
years

Thousands of U.S. dollars
Over 2 year Over 3 year
within 3
within 4
years
years

Over 4 year
within 5
years

Over 5
years

$

$

$

$

–
18,1820$ 18,182¥

Over 5
years

–
1,047
0
¥ 1,047–
53,4610$ 53,461¥

Over 4 year
within 5
years

$

–
11,1960$ 11,196–
11,1320$ 11,132–
43,722–$ 43,721

30

Asanuma Corporation
Notes to Consolidated Financial Statements (continued)

19. Derivatives
Derivative transactions to which hedge accounting is applied
Interest-rate related transactions

Method of hedge
accounting
Swap rate applied
to underlying
debt

Method of hedge
accounting
Swap rate applied
to underlying
debt

Transaction
Interest rate swap:
Receive / floating
and pay / fixed
Total

Transaction
Interest rate swap:
Receive / floating
and pay / fixed
Total

Millions of yen
2013(Including portion in
Notional amount excess of one year)¥ 4,436¥ 4,436¥ 3,697¥ 3,697

Millions of yen
2012(Including portion in
Notional amount excess of one year)

¥ 361
¥ 361

¥ －
¥ －

Estimated
fair value

(*)
(*)

Estimated
fair value

(*)
(*)

Thousands of U.S. dollars
Method of hedge
accounting
Swap rate applied
to underlying
debt

Transaction
Interest rate swap:
Receive / floating
and pay / fixed
Total

2013
(Including portion in
Notional amount excess of one year)$47,166$47,166$39,309$39,309

Estimated
fair value

(*)
(*)

*Because interest rate swap agreements are accounted for as if the interest rates applied tothe swaps had originally applied to the underlying long-term loans payable, their fairvalues were included in long-term debt.

31

Asanuma Corporation
Notes to Consolidated Financial Statements (continued)

20. Amounts per Share
Amounts per share at March 31, 2013 and 2012 and for the years then ended were as
follows:
2013

2012

U.S. dollars
2013¥ 113.03(44.92)¥ 148.00(111.63)$ 1.20(0.48)Yen
Net assets
Net loss

Information used in the computation of net loss per share for the years ended March 31,
2013 and 2012 is presented as follows:
Millions of yen
2012
2013
Net loss
Net loss not applicable to commonshareholders
Net loss used in the calculation of net loss
per share¥ (3,420)¥(8,496)–

Thousands of
U.S. dollars
2013$ (36,364)–¥(8,496)¥ (3,420)–$ (36,364)

Thousands of shares
2012
2013
Weighted-average number of shares used in
the calculation of net loss per share

76,107

76,113

Net assets per share are based on the number of shares of common stock outstanding at theyear end.
Net loss per share is computed based on the net loss attributable to shareholders ofcommon stock and the weighted-average number of shares of common stock outstanding
during the year. Diluted amounts per share have not been presented for the years ended
March 31, 2013 and 2012 since neither the Company nor any of the consolidated
subsidiaries had any potentially dilutive shares at March 31, 2013 and 2012.

32

Asanuma Corporation
Notes to Consolidated Financial Statements (continued)

21. Supplementary Cash Flow Information
In February 2013, the assets and liabilities of Nara Manyo Country Club were excluded
from consolidation due to the sale of its shares. The following table summarizes theassets and liabilities excluded from consolidation and the proceeds from the sale of sharesfor the year ended March 31, 2013:
Millions of yen
2013
Current assets
Property, plant and equipment, net andinvestments and other assets
Current liabilities
Long-term liabilities
Gain on sales of investments of securities
Gross proceeds from sale of shares
Cash and equivalents
Net proceeds from sale of shares

¥

86

1,557
(77)
(1,340)
472
698
(70)
¥ 628

Thousands of
U.S. dollars
2013
$

914
16,555(818)(14,248)
5,018
7,421
(744)
$ 6,677

22. Segment Informationa.

Segment Information(1) Overview of reporting segments
The reporting segments of the Company and its consolidated subsidiaries arecomponents for which discrete financial information is available and whose operating
results are regularly reviewed by the Company’s Board of Directors to make decisions
about resource allocation and assess their performance.
The Company and its consolidated subsidiaries mainly operate in the construction
business and have two reporting segments, which are the Building Construction
Segment and the Civil Engineering Segment.

33

Asanuma Corporation
Notes to Consolidated Financial Statements (continued)

22. Segment Information (continued)(2) Method of calculating sales and income (loss) in reporting segments
The method of accounting for reporting segments is, in principle, the same as stated in
Note 4 “Summary of Significant Accounting Policies.” The income (loss) ofreporting segments are calculated on the basis of operating income (loss).
Intersegment sales are recorded based on current market prices.
Millions of yen
2013

Net sales and income (loss):
Sales to third parties
Intersegment sales
Net sales
Segment income (loss)

Reporting Segments
Building
Civil
Total
Construction Engineering

Others

Sub total¥ 98,859
7
98,866¥743¥ 2,215
113
2,328
¥
93

¥ 121,193
120
121,313¥ 1,953¥ 20,119–
20,119¥ 1,117¥ 118,978
7
118,985¥ 1,860

Adjustments
¥

Total

–
(120)
(120)
¥ (5,806)¥121,193–
121,193¥ (3,853)

Total

Millions of yen
2012

Net sales and income (loss):
Sales to third parties
Intersegment sales
Net sales
Segment (loss) income

Reporting Segments
Building
Civil
Total
Construction Engineering

Others

Sub total

Adjustments¥ 119,193
30
119,223¥ (1,793)¥ 3,301
127
3,428
¥ 313

¥ 140,462
157
140,619¥ (1,030)¥¥ 17,968–
17,968¥450¥ 137,161
30
137,191¥ (1,343)

–
(157)
(157)
¥ (6,194)¥ 140,462–
140,462¥ (7,224)

Adjustments

Total

Thousands of U.S. dollars
2013
Reporting Segments
Civil
Building
Construction Engineering
Net sales and income (loss):
Sales to third parties
Intersegment sales$ 1,051,132
74$ 213,919–$1,265,051
74

1,051,206

213,919

1,265,125

7,900$ 11,877$

Net sales
Segment income (loss)

Total

$

19,777

Others

Sub total$ 23,551 $ 1,288,602
1,202
1,276
24,753
$

989 $

$

–
(1,276)$ 1,288,602–

1,289,878(1,276)

1,288,602

20,766$ (61,734)

34$(40,968)

Asanuma Corporation
Notes to Consolidated Financial Statements (continued)

22. Segment Information (continued)b.

Related information(1) Information by products and services
Disclosure of information by products and services for the years ended March 31, 2013
and 2012 has been omitted as the Company classifies such information in the same way as
it does its reporting segments.
(2) Information by geographical segment
Disclosure of sales and property, plant and equipment by geographical area for the years
ended and as of March 31, 2013 and 2012 has been omitted as sales to domestic customers
were in excess of 90% of consolidated net sales, and the balance of property, plant andequipment in Japan was in excess of 90% of consolidated property, plant and equipment.
(3) Information by major customers
Disclosure of information by major customers for years ended March 31, 2013 and 2012
has been omitted as sales to each customer were less than 10% of consolidated net sales.
c.

Loss on impairment of fixed assets by reporting segment
Millions of yen
2013
Reporting Segments

Loss on impairmentof fixed assets

Building
Construction

Civil
Engineering

Total

¥–

¥–

¥–

Other

Elimination
andcorporate

Total

¥ 217

¥ 19

¥ 236

Total

Millions of yen
2012
Reporting Segments

Loss on impairmentof fixed assets

Building
Construction

Civil
Engineering

Total

Other

Elimination
andcorporate

¥–

¥–

¥–

¥ 67

¥ 192

¥ 259

Total
$ 2,509

Thousands of U.S. dollars
2013
Reporting Segments

Loss on impairmentof fixed assets

Building
Construction

Civil
Engineering

Total

Other

Elimination
andcorporate

$–

$–

$–

$ 2,307$ 202

35