Consolidated Financial Statements
Asanuma Corporation
Years ended March 31, 2012 and 2011
with Independent Auditor’s ReportAsanuma Corporation
Consolidated Financial Statements
Years ended March 31, 2012 and 2011

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,
2012, 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, 2012, 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 28, 2012
Osaka, Japan1

Asanuma Corporation
Consolidated Balance Sheets
March 31, 2012 and 2011

Millions of yen
2011
2012
AssetsCurrent assets:
Cash and cash deposits (Notes 5 and 17)
Receivables:
Notes receivable (Notes 6 and 17)
Accounts receivable on completed construction
contracts (Note 17)
Other accounts receivable
Allowance for doubtful accounts¥ 28,530¥

25,684

Thousands of
U.S. dollars(Note 2)
2012$

347,123

4,259

6,198

51,81957,8172,004(272)
63,80855,461
2,559(749)
63,469703,455
24,382(3,309)776,347

804
9,822
45
10,671990
12,86344
13,897

9,782
119,504547
129,833

Deferred income taxes (Note 10)
Other current assets
Total current assets

1
294
103,304

2
2,114
105,166

12
3,578
1,256,893

Property, plant and equipment, at cost:
Land (Note 9)
Buildings and structures (Note 9)
Machinery, equipment and vehicles
Tools, furniture and fixtures
Leased assets
Less accumulated depreciation
Property, plant and equipment, net

6,594
14,549
1,112
1,214
57
(11,479)
12,047

6,764
14,545
1,154
1,251
57
(11,185)
12,58680,229177,016
13,53014,771
693(139,664)
146,575

5,955

5,760

72,453

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

77
430
458
2,611
(1,209)
8,127

986
5,183
5,147
34,067(10,634)
107,202¥ 124,162¥ 125,879$ 1,510,670

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

Investments and other assets:
Investments in securities (Notes 8, 9 and 17)
Investments in an unconsolidated subsidiary andaffiliates (Note 17)
Long-term loans receivable (Note 9)
Intangible assets
Other assets
Allowance for doubtful accounts
Total investments and other assets

Total assets

2Millions of yen
2011
2012
Liabilities
Current liabilities:
Short-term bank loans (Notes 9 and 17)
Current portion of long-term debt (Notes 9 and 17)
Payables (Note 17):
Notes payable
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 10)
Consumption taxes payable
Deferred income taxes (Note 10)
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 9 and 17)
Accrued retirement benefits for employees (Note 11)
Deferred income taxes (Note 10)
Other long-term liabilities
Total long-term liabilities
Total liabilities
Net assets
Shareholders’ equity (Note 12):
Common stock:
Authorized – 293,565,000 shares
Issued– 77,386,293 shares in 2012 and2011
Capital surplus
Retained earnings
Less treasury stock, at cost
Total shareholders’ equity
Accumulated other comprehensive income:Net unrealized holding gain on securities (Note 8)
Total accumulated other comprehensive income
Minority interests
Total net assets
Total liabilities and net assets

Thousands of
U.S. dollars(Note 2)2012

¥ 22,514
1,314¥ 24,765
2,547$

273,926
15,987

5,752
30,16315,363
51,2785,396
26,931
15,05447,381

69,984366,991
186,921623,896

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

7,493
2,362
1,044
2,037
220
－
13

109,989
30,344
20,65919,8202,166
15,537
133

778
6
2,271
15
94,503

599
323
914
161
89,8599,466
73
27,631184
1,149,811

10,208
4,112
1,280
2,743
18,343112,846

7,907
3,620
1,408
3,341
16,276106,135

124,200
50,03015,57433,374
223,178
1,372,989

8,419
4,641
(2,331)(136)
10,593

8,419
4,641
6,317
(136)
19,241

102,433
56,467(28,361)(1,655)
128,884

672
672
51
11,316¥ 124,162

468
468
35
19,744¥ 125,879

8,176
8,176
621
137,681$ 1,510,670

See accompanying notes to consolidated financial statements.
3

Asanuma Corporation
Consolidated Statements of Operations
Years ended March 31, 2012 and 2011

Millions of yen
2011
2012
Net sales (Note 20):
Completed construction contracts
Other¥ 137,161
3,301
140,462¥ 126,352
1,850
128,202$ 1,668,828
40,163
1,708,991

138,4732,708
141,181

118,564
1,465
120,029

1,684,791
32,9481,717,739(1,312)
593
(719)

7,788
385
8,173

(15,963)
7,215(8,748)

6,505(7,224)

6,950
1,223

79,146(87,894)

396
(654)
(25)
230

297
(721)
(25)
1,708

4,818
(7,957)
(304)
2,798

－
－
(259)
(21)
－
(825)
(83)

757
(104)
(439)
(1,490)
(536)
－
(195)

－
－
(3,151)(256)－(10,038)(1,009)(8,465)475(102,993)

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

162
(13)
149
326
16
310

1,972
(1,789)183(103,176)
194$ (103,370)

Cost of sales (Note 13):Completed construction contracts
Other
Gross (loss) profit:
Completed construction contracts
Other

Selling, general and administrative
expenses (Note 14)
Operating (loss) income (Note 20)
Other income (expenses):
Interest and dividends income
Interest expenses
Guarantee fees
Gain on sales of property, plant and equipment, net
Gain on partial conversion to defined contribution
pension plans
Loss on repairs of completed construction
Loss on impairment of tangible fixed assets (Note 7)
Provision of allowance for doubtful accounts
Provision for loss on construction contracts
Loss on construction contracts
Other, net(Loss) income before income taxes and minority
interests
Income taxes (Note 10):
Current
Deferred(Loss) income before minority interests
Minority interests
Net (loss) income

Thousands of
U.S. dollars(Note 2)
2012

¥

¥

See accompanying notes to consolidated financial statements.
4

Asanuma Corporation
Consolidated Statements of Comprehensive Loss
Years ended March 31, 2012 and 2011

(Loss) income before minority interests
Other comprehensive income (loss) (Note 15):
Net unrealized holding gain (loss) on securities
Total other comprehensive income (loss)
Comprehensive loss
Comprehensive (loss) income attributable to:Shareholders of the Company
Minority interests

Millions of yen
2011
2012
¥ (8,480)¥ 326

Thousands of
U.S. dollars(Note 2)2012
$ (103,176)

204
¥204
¥ (8,276)

(404)
(404)
¥ (78)

2,482
2,482$ (100,694)¥ (8,292)16¥ (94)
16$ (100,888)
194

See accompanying notes to consolidated financial statements.
5

Asanuma Corporation
Consolidated Statements of Changes in Net Assets
Years ended March 31, 2012 and 2011

Balance at April 1, 2010
Net income for the year
Sales of treasury stock
Increase in treasury stock
Net change in items other thanshareholders’ 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 March 31, 2012

Shareholders’ equity

Millions of yen
Accumulated
othercomprehensive
incomeCommonstock

CapitalsurplusRetainedearnings

Treasurystock, atcost

Net unrealized
holding gain
on securities

Minority
interests

Total net
assets¥ 8,419–––¥ 4,641 ¥ 6,007
–
310
(0)
–
–
–

¥ (135)
–
0
(1)

¥ 872
–
–
–

¥ 19
–
–
–

¥ 19,823
310
0
(1)

–

–

(404)

16

(388)

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

¥ (136)
–
–
1
(1)

¥ 468
–
–
–
–

¥ 35
–
–
–
–

¥ 19,744(8,496)
(152)
1
(1)

–
¥ 8,419–¥ 4,641–¥ (136)

204
¥ 672

16
¥ 51

220
¥ 11,316

Net unrealized
holding gain
on securities

Minority
interests

Total net
assets–––¥ (2,331)

Thousands of U.S. dollars (Note 2)
Accumulated
othercomprehensive
incomeShareholders’ 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 otherthan shareholders’ equity
Balance at March 31, 2012

Retainedearnings

Treasurystock, atcost

Commonstock

Capitalsurplus$ 102,433––––$ 56,467 $ 76,859 $ (1,655)– (103,370)––(1,850)
–
(0)
–
12
–
–
(12)

$ 5,694
–
–
–
–

$ 426
–
–
–
–

$ 240,224(103,370)(1,850)12(12)–$ 102,433–––$ 56,467 $ (28,361) $ (1,655)

2,482$ 8,176

195
$ 621

2,677
$ 137,681

See accompanying notes to consolidated financial statements.
6

Asanuma Corporation
Consolidated Statements of Cash Flows
Years ended March 31, 2012 and 2011

Millions of yen
2011
2012
Cash flows from operating activities:(Loss) income before income taxes and minority interests
Adjustments for:
Depreciation and amortization
Loss on impairment of tangible fixed assets
Increase in allowance for doubtful accounts
Decrease in provision for bonuses
Increase (decrease) in provision for loss on
construction contracts
Increase (decrease) in accrued retirement benefits for
employees
Interest and dividends income
Interest expenses
Foreign exchange (losses) income, net
Gain on sales of property, plant and equipment, net
Increase in notes and accounts receivable on completed
construction contracts
Decrease in inventories
Increase in notes and accounts payable on construction
contracts
Increase (decrease) in advances received on
uncompleted construction contracts
Other, net
SubtotalInterest and dividends received
Interest paid
Income taxes paid
Net cash 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
Other, net
Net cash provided (used in) by investing activities¥ (8,465)¥¥

Thousands of
U.S. dollars(Note 2)
2012

475

$ (102,993)

572
259
150
(317)

595
439
1,495
(5)

6,959
3,151
1,825
(3,857)

1,356

(28)

16,498

492
(396)
654
(0)
(230)

(4,067)
(297)
721
34
(1,708)5,986(4,818)7,957(0)(2,798)

(417)
3,150

(657)
3,354

(5,074)38,326

3,588

5,443

43,655

1,547
2,577
4,520
393
(693)
(180)
4,040

(2,924)
4,551
7,421
293
(776)
(274)
6,664

18,822
31,35654,995
4,781(8,432)(2,190)49,154(143)(2,367)(1,740)

276
(109)
(8)
3
(30)
131
35
155

2,201
(73)
(414)
156
(176)
36
21
¥ (616)

3,358(1,326)
(97)
37
(365)
1,594
425
1,886

$

7

Asanuma Corporation
Consolidated Statements of Cash Flows (continued)
Years ended March 31, 2012 and 2011

Millions of yen
2011
2012
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
Repayments for deposits received from membership
Other, net
Net cash 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 (Note 5)

Thousands of
U.S. dollars(Note 2)2012

¥ (3,484)
3,615(1,314)
(152)
(13)
–
(1)
(1,349)¥ (2,614)
97(2,548)
–
(12)
(19)
0
(5,096)$ (42,390)
43,983(15,987)(1,850)
(158)
－
(11)
(16,413)

02,846
25,684¥ 28,530(34)
918
24,766¥ 25,684

034,627
312,496$ 347,123

See accompanying notes to consolidated financial statements.
8

Asanuma Corporation
Notes to Consolidated Financial Statements
Years ended March 31, 2012 and 2011

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, 2011 to the 2012
presentation. 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 ¥82.19 = U.S.$1.00, theexchange rate prevailing on March 31, 2012. This translation should not be construed asa representation that yen can be converted into U.S. dollars at the above or any other rate.

9

Asanuma Corporation
Notes to Consolidated Financial Statements (continued)

3.

Principles of Consolidation

At March 31, 2012 and 2011, the Company had 6 subsidiaries. The consolidated
financial statements for the years ended March 31, 2012 and 2011 include the accounts of
the Company and its 5 subsidiaries.
The Company applied the equity method to its investments in 3 affiliates, at March 31,
2012 and 2011 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.

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.

10

Asanuma Corporation
Notes to Consolidated Financial Statements (continued)

4.

Summary of Significant Accounting Policies (continued)(d) Inventories
Real estate held for sale is stated at the lower of cost or net selling value, cost being
determined on an individual project basis. Cost of uncompleted construction
contracts are stated at cost 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.
(f) Computer software (Other than leased 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 by the straight-line method 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.
(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.

11Asanuma Corporation
Notes to Consolidated Financial Statements (continued)

4.

Summary of Significant Accounting Policies (continued)(j) Provision for loss on construction contracts
A provision for loss on construction contracts is provided for anticipated future losses
on uncompleted construction projects.
(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 ¥129,174 million ($1,571,651 thousand)and ¥115,152 million for the years ended March 31, 2012 and 2011, respectively.
Additional information
Effective April 1, 2011, the Company and its domestic consolidated subsidiaries
adopted “Accounting Standard for Accounting Changes and Error Corrections”(Accounting Standards Board of Japan (“ASBJ”) Statement No.24 issued on
December 4, 2009) and the “Guidance on Accounting Standard for Accounting
Changes and Error Corrections” (ASBJ Guidance No.24 issued on December 4,2009).

5.

Cash and Cash Equivalents

A reconciliation between the balances of cash and cash deposits in the accompanying
consolidated balance sheets at March 31, 2012 and 2011 and the balances of cash and cash
equivalents as presented in the accompanying consolidated statements of cash flows forthe years then ended have been omitted since there were no reconciliation items.

6.

Notes Receivable

The balance sheet date for the year ended March 31, 2012 fell on a bank holiday.
Consequently, notes receivable of ¥164 million ($1,995 thousand) with due dates of March
31, 2012 were included in the balance in the consolidated balance sheet at March 31, 2012
and were settled on the next business day.

13

Asanuma Corporation
Notes to Consolidated Financial Statements (continued)

7.

Loss on Impairment of Tangible Fixed Assets

Aggregate losses on impairment of tangible fixed assets of ¥259 million ($3,151 thousand)and ¥439 million were recorded for the years ended March 31, 2012 and 2011,
respectively. Losses on impairment related to land in the amount of ¥144 million($1,752 thousand) and buildings in the amount of ¥115 million ($1,399 thousand) for theyear ended March 31, 2012 and land in the amount of ¥61 million and buildings in theamount of ¥378 million for the year ended March 31, 2011 are outlined as follows:

Location
Ishikawa
Prefecture
and other
Chiba
Prefecture
and otherMain use
Leasing
Idle property

Location
KagawaPrefecture
and other
Hiroshima
Prefecture

Main useClass
Buildings
and land
Buildings
and landClass

Leasing

Buildings
and landIdle property

Land

Millions of yen
2012

Thousands of
U.S. dollars
2012

¥ 67

$

815

192
¥ 259

2,336
$ 3,151

Millions of yen
2011
¥ 435
4
¥ 439

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, 2012 and 2011,
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.

14

Asanuma Corporation
Notes to Consolidated Financial Statements (continued)

8.

Investments in Securities

At March 31, 2012 and 2011, 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

2012
Estimated Unrealized
fair value
gain

¥ 30
¥ 30

¥ 31
¥ 31

Carrying
value

2011
Estimated
fair value

Unrealized
gain

¥ 30
¥ 30

¥ 31
¥ 31

¥1
¥1

¥ 1
¥ 1

Thousands of U.S. dollars
2012
Carrying Estimated Unrealizedvalue
fair value
gain
Held-to-maturity debt
securities whose
estimated fair value
exceeds their carrying
value:
Government andmunicipal bonds

$ 365
$ 365

$ 377
$ 377

$ 12
$ 12

At March 31, 2012 and 2011, 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

2011
Carrying
value

Unrealized
gain (loss)¥ 2,478¥ 3,416

¥ 938

1,677
¥ 4,155

1,498¥ 4,914

(179)
¥ 759

Acquisition
costs

2012
Carrying
value

Unrealized
gain (loss)

Acquisitioncosts¥ 2,944¥ 4,082¥ 1,138

1,185¥ 4,129

1,031¥ 5,113

(154)
¥ 984

15

Asanuma Corporation
Notes to Consolidated Financial Statements (continued)

8.

Investments in Securities (continued)
Thousands of U.S. dollars
2012
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$ 35,819$ 49,666$ 13,846

14,418$ 50,237

12,544$ 62,210(1,874)$ 11,972

Refer to Note 17 for the redemption schedule at March 31, 2012 for held-to-maturity debt
securities.
For the years ended March 31, 2012 and 2011, the Company has recognized losses on
impairment of equity securities classified as other securities of ¥35 million ($426
thousand) and ¥16 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 (loss) gain on sales of other securities for the years ended
March 31, 2012 and 2011 are summarized as follows:

Millions of yen
2012
2011
Proceeds
Realized gain
Realized loss

¥3
–
(0)

¥ 156
0
(10)

Thousands of
U.S. dollars
2012
$ 37
0
(0)

16

Asanuma Corporation
Notes to Consolidated Financial Statements (continued)

9.

Short-Term Bank Loans and Long-Term Debt

Short-term bank loans from banks had average interest rates of 1.67% at March 31, 2012
and 1.7% at March 31, 2011.
Long-term debt at March 31, 2012 and 2011 is summarized as follows:
Thousands of
U.S. dollars
2012

Millions of yen
2012
2011
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
1.31% to 2.56%
Total
Less current portion included in current
liabilities¥87¥ 1,711$

1,058

11,435
11,522

8,743
10,454

139,129
140,187(1,314)¥ 10,208(2,547)¥ 7,907(15,987)$ 124,200

The aggregate annual maturities of long-term debt subsequent to March 31, 2012 aresummarized as follows:Year ending March 31,
2013
2014
2015
2016 and thereafter

Millions of yen¥ 1,314
956
4,288
4,964
¥ 11,522

Thousands of
U.S. dollars$ 15,987
11,631
52,17260,397$ 140,187

Assets pledged at March 31, 2012 as collateral for loans of the Company are summarized
as follows:
Thousands ofMillions of yen
U.S. dollars
Land¥ 1,822$ 22,168
911
11,084
Buildings and structures¥ 2,733$ 33,252
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, 2012 amounted to ¥8,779 million ($106,813 thousand) as collateral for loans of ¥8,099
million ($98,540 thousand).
Assets pledged at March 31, 2012 as collateral for loans of affiliates engaged in a PFI
business are summarized as follows:
Thousands ofMillions of yen
U.S. dollars
Investments in securities
¥ 59
$ 718
192
2,336
Long-term loans receivable¥ 251$ 3,054
17

Asanuma Corporation
Notes to Consolidated Financial Statements (continued)

10. Income Taxes
Income taxes applicable to the Company and its consolidated subsidiaries comprise
corporation, inhabitants’ and enterprise taxes which, in the aggregate, resulted in astatutory tax rate of approximately 40.8% for the years ended March 31, 2012 and 2011.
A reconciliation of the statutory tax rate and the effective tax rates for the years ended
March 31, 2012 and 2011 as a percentage of (loss) income before income taxes andminority interests is summarized as follows:

Statutory tax rate
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 tax relating toexcess of cost over equity in net assets ofsubsidiaries and other
Other
Effective tax rates

2012
40.8 %
(1.0)
0.2
(1.6)

2011
40.8 %
20.0
(3.0)
26.6

(39.6)
1.6(54.9)–

0.1(0.5)(0.2)%

1.6
0.3
31.4 %

Following the promulgation on December 2, 2011, of the “Act for Partial Revision of the
Income Tax Act, etc., for the Purpose of Creating a Taxation System Responding toChanges in Economic and Social Structures” (Act No. 114 of 2011) and the “Act on
Special Measures for Securing Financial Resources Necessary to Implement Measures for
Reconstruction following the Great East Japan Earthquake” (Act No. 117 of 2011),
effective from fiscal years beginning on and after April 1, 2012, corporate tax rates will be
reduced and a special temporary recovery tax will be imposed. In accordance with thisreform, the effective statutory tax rate, used to measure deferred tax assets and deferred
tax liabilities, will be reduced to 38.3% from 40.8% for temporary differences that are
expected to be realized during the period from the fiscal year beginning on January 1,
2013, to the fiscal year beginning on January 1, 2015, and to 35.9% from 40.8% for
temporary differences that are expected to be realized during and after the fiscal year
beginning on January 1, 2016.
As a result, the net amount of deferred tax liabilities (net of deferred tax assets) decreasedby ¥181 million ($2,202 thousand), and income taxes - deferred and net unrealized
holding gain on securities decreased by ¥138 million ($1,679 thousand) and ¥43 million($523 thousand), respectively, in the accompanying consolidated financial statements forthe year ended March 31, 2012.

18

Asanuma Corporation
Notes to Consolidated Financial Statements (continued)

10. Income Taxes (continued)
The significant components of deferred tax assets and liabilities of the Company and its
consolidated subsidiaries at March 31, 2012 and 2011 are summarized as follows:

Millions of yen
2012
2011
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 tangible
fixed assets
Loss on revaluation of fixed assets
and other
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

¥

622
0

¥

851
140

Thousands of
U.S. dollars
2012
$

7,568
0

298
59

245
34

3,626
718

869

374

10,573

1,444

1,431

17,569838

1,240

10,196

576

415

7,008

1,092

1,399

13,286

136
2,408

174
13

1,655
29,298

49
957
9,348
(9,297)
51

50
523
6,889
(6,837)52

596
11,644
113,737(113,116)
621

(312)
(1,025)(4)(1,341)¥ (1,290)(290)(1,174)(7)(1,471)¥ (1,419)(3,796)(12,471)(49)(16,316)$ (15,695)

19

Asanuma Corporation
Notes to Consolidated Financial Statements (continued)

11. Retirement Benefits
The Company and its certain consolidated subsidiaries 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 subsidiaries pay
additional retirement benefits under certain conditions. In addition, the Company
transferred a certain portion of a lump-sum payment plan 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, 2012 and 2011
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
2011
2012
¥ (12,875)¥ (13,321)
7,149
6,722
(6,153)(6,172)2,552
2,041¥ (3,620)¥ (4,112)

Thousands of
U.S. dollars
2012$ (156,649)
81,786(74,863)
24,833$ (50,030)

A consolidated subsidiary has calculated their retirement benefit obligation based on theamount which would be payable at the year end if all eligible employees terminated theirservices voluntarily.
The components of retirement benefit expenses for the years ended March 31, 2012 and2011 are outlined as follows:

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

Millions of yen
2011
2012
¥ 391
¥ 491
266
469
(143)
(331)
735
580
¥ 1,364¥ 1,094

Thousands of
U.S. dollars
2012$ 4,757
3,236(1,740)7,058$ 13,311–
198¥ 1,292–
2,409$ 15,720

(757)
103
¥ 710

20

Asanuma Corporation
Notes to Consolidated Financial Statements (continued)

11. Retirement Benefits (continued)
The assumptions used in accounting for the defined benefit pension plans for the years
ended March 31, 2012 and 2011 were as follows:

Discount rate
Expected rate of return on plan assets

2012

2011

2.0%
2.0%

2.0%
2.0%

12. 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 and 2011
amounted to ¥2,104 million ($25,599 thousand).
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.

21

Asanuma Corporation
Notes to Consolidated Financial Statements (continued)

12. Shareholders’ Equity (continued)
Movements in shares of common stock in issue and treasury stock during the years ended
March 31, 2012 and 2011 are summarized as follows:

April 1, 2011
Shares ofcommon stockin issue
Treasury stock

77,386,293
1,270,197

April 1, 2010
Shares ofcommon stockin issue
Treasury stock

77,386,293
1,262,018

Number of shares
2012
Increase
Decrease

–
8,867

–
2,539

Number of shares
2011
Increase
Decrease

–
9,479

–
1,300

March 31, 2012

77,386,293
1,276,525

March 31, 2011

77,386,293
1,270,197

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, 2012 and2011.

13. Provision for Loss on Construction Contracts
Provision for loss on construction contracts included in cost of sales for the years ended
March 31, 2012 and 2011 amounted to ¥2,271 million ($27,631 thousand) and ¥378
million, respectively.

14. Research and Development Costs
Research and development costs included in selling, general and administrative expenses
for the years ended March 31, 2012 and 2011 amounted to ¥137 million ($1,667 thousand)and ¥141 million, respectively.

22

Asanuma Corporation
Notes to Consolidated Financial Statements (continued)

15. Other Comprehensive Income (Loss)
The following table presents reclassification adjustments and tax effects allocated tocomponents of other comprehensive income for the year ended March 31, 2012:

Unrealized holding gain on investments insecurities:
Gains arising during the year
Reclassification adjustments for loss realized in thestatement of operations
Before tax effectTax effectUnrealized holding gain on investments insecurities, net
Total other comprehensive income

Millions of yen
2012

Thousands of
U.S. dollars

2012

¥ 191

$ 2,324

33
224
(20)

401
2,725
(243)

204
¥ 204

2,482
$ 2,48223

Asanuma Corporation
Notes to Consolidated Financial Statements (continued)

16. 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.
The following pro forma amounts represent the acquisition costs, accumulated
depreciation and net book value of the leased property as of March 31, 2012 and 2011,
which would have been reflected in the accompanying consolidated balance sheets if
finance lease accounting had been applied to the finance leases under which the Company
and its consolidated subsidiaries are lessees and which are currently accounted for as
operating leases:
Millions of yen
2012
2011
Acquisition Accumulated Net book Acquisition Accumulated Net bookcosts
depreciation
value
costs
depreciation
value
Tools, furniture andfixtures

¥ 18

¥ 17

¥1

¥ 21

¥ 16

¥5

Thousands of U.S. dollars
2012
Acquisition Accumulated Net bookcosts
depreciation
value
Tools, furniture andfixtures

$ 219

$ 207

$ 12

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 years ended March 31, 2012 and 2011, were as follows:
Millions of yen
2011
2012
Lease payments
Depreciation
Interest expense

¥4
4
0

¥5
5
0

Thousands of
U.S. dollars
2012
$ 49
49
0

Future minimum lease payments (including the interest portion thereon) subsequent toMarch 31, 2012 under finance leases other than those which transfer ownership of theleased property to the Company and its consolidated subsidiaries are ¥1 million ($12thousand), which is scheduled to be paid within one year.

24Asanuma Corporation
Notes to Consolidated Financial Statements (continued)

17. 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 loans payable, and derivative transactions are notcarried 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.

25

Asanuma Corporation
Notes to Consolidated Financial Statements (continued)

17. Financial Instruments (continued)
The carrying value, estimated fair value and resulting differences as of March 31, 2012
and 2011 are as follows. Financial instruments for which fair value is deemed extremely
difficult to determine are not included.
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

–

Millions of yen
2011

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¥ 25,684

Estimated fairvalue
¥ 25,684

Difference¥ –61,6594,944¥ 92,287

61,983
4,945¥ 92,612

324
1
¥ 325

¥ 27,312¥ 27,312¥ –32,327
15,054
7,907¥ 82,600

32,327
15,054
7,953¥ 82,646

–
–
46
¥ 46

26

Asanuma Corporation
Notes to Consolidated Financial Statements (continued)

17. Financial Instruments (continued)
Thousands of U.S. dollars
2012
Carrying value

Estimated fairvalue

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

755,274
62,562$ 1,164,959

760,056
62,574$ 1,169,753

4,782
12
$ 4,794

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

$

$

$

347,123

289,913436,975
186,921
124,200$ 1,038,009

347,123

289,913436,975
186,921125,234$ 1,039,043

Difference
$

–

–

–
–
1,034
$ 1,034

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.

27

Asanuma Corporation
Notes to Consolidated Financial Statements (continued)

17. 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 18 for fair value information at March 31, 2012 of derivativetransactions.
Financial instruments for which it is extremely difficult to determine the fair value:
Unlisted equity securities of ¥894 million ($10,877 thousand) and ¥893 million reflectedin the consolidated balance sheets at March 31, 2012 and 2011, 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, 2012 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
¥ 28,526

Millions of yen
Over 1 year
within 5 years¥–

Over 5 years¥–

55,204

3,211

3,661

–
¥ 83,73030¥ 3,241–¥ 3,661

Thousands of U.S. dollars
Over 1 year
Over 5 years
Within 1 year
within 5 years$ 347,074$–$–
671,663

39,06844,543–$ 1,018,737

365$ 39,433–$ 44,543

Refer to Note 9 for the redemption schedule at March 31, 2012 of long-term debt.
28

Asanuma Corporation
Notes to Consolidated Financial Statements (continued)

18. Derivatives
The Company utilizes interest-rate swaps to hedge the risk of fluctuation in interest rates
on its borrowings. The Company does not enter into derivatives transactions for
speculative or short-term trading purposes.
The Company is exposed to certain market risk arising from interest-rate swap agreements.
It is also exposed to the risk of credit loss in the event of nonperformance by thecounterparties with respect to interest-rate swap agreements; however, the Company does
not anticipate nonperformance by any of the counterparties, all of whom are financial
institutions with high credit ratings.
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
2012(Including portion in
Notional amount excess of one year)

¥
¥

361
361

¥
¥

－
－

Millions of yen
2011(Including portion in
Notional amount excess of one year)

¥ 850
¥ 850

¥ －
¥ －

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

2012
(Including portion in
Notional amount excess of one year)$ 4,392$ 4,392$ －$ －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.
29

Asanuma Corporation
Notes to Consolidated Financial Statements (continued)

19. Amounts per Share
Amounts per share at March 31, 2012 and 2011 and for the years then ended were as
follows:
2012

2011

U.S. dollars
2012¥ 148.00(111.63)–¥ 258.94
4.06
2.00$ 1.80(1.36)–Yen
Net assets
Net (loss) income
Cash dividends applicable to the year

Information used in the computation of net (loss) income per share for the years ended
March 31, 2012 and 2011 is presented as follows:
Millions of yen
2011
2012
Net (loss) income
Net (loss) income not applicable tocommon shareholders
Net (loss) income used in the calculationof net (loss) income per share

Thousands of
U.S. dollars
2012¥ (8,496)¥ 310$ (103,370)

–

–

–

¥ (8,496)¥ 310$ (103,370)

Thousands of shares
2011
2012
Weighted-average number of shares used in
the calculation of net (loss) income per share

76,11376,121

Net assets per share are based on the number of shares of common stock outstanding at theyear end.
Net (loss) income per share is computed based on the net (loss) income attributable toshareholders of common stock and the weighted-average number of shares of common
stock outstanding during the year. Diluted amounts per share have not been presented forthe years ended March 31, 2012 and 2011 since neither the Company nor any of theconsolidated subsidiaries had any potentially dilutive shares at March 31, 2012 and 2011.

30

Asanuma Corporation
Notes to Consolidated Financial Statements (continued)

20. 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.
(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
2012

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

Reporting Segments
Civil
Building
Total
Construction Engineering

Others

Sub total¥ 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)

Adjustments
¥

Total

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

Total

Millions of yen
2011

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

Reporting Segments
Building
Civil
Total
Construction Engineering

Others

Sub total

Adjustments¥ 104,762
8
104,770¥ 6,630¥ 1,850
136
1,986
¥ 194

¥ 128,202
144
128,346¥ 7,980¥¥ 21,590–
21,590¥ 1,156¥ 126,352
8
126,360¥ 7,786

–
(144)
(144)
¥ (6,757)¥ 128,202–
128,202¥ 1,22331

Asanuma Corporation
Notes to Consolidated Financial Statements (continued)

20. Segment Information (continued)a.

Segment Information (continued)

Thousands of U.S. dollars
2012
Reporting Segments
Building
Civil
Construction Engineering
Net sales and income (loss):
Sales to third parties
Intersegment salesb.

Others

Sub total

Adjustments$$ 1,450,213
365$ 218,615–$1,668,828
365$ 40,163
1,546$ 1,708,991
1,911

1,450,578

218,615

1,669,193

41,7095,475$ (16,340)$ 3,808

Net sales
Segment (loss) income

Total

$

(21,815)

$

$

Total

–
(1,911)$ 1,708,991–

1,710,902(1,911)

1,708,991(12,532)$ (75,362)

Related information(1) Information by products and services
Disclosure of information by products and services for the years ended March 31, 2012
and 2011 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, 2012 and 2011 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, 2012 and 2011
has been omitted as sales to each customer were less than 10% of consolidated net sales.

32$(87,894)

Asanuma Corporation
Notes to Consolidated Financial Statements (continued)

20. Segment Information (continued)c.

Impairment losses on tangible fixed assets by reporting segment
Millions of yen
2012
Reporting Segments
Civil
Building
Construction Engineering

Impairment losses ontangible fixed assets

¥–

¥–

Total

Other

Elimination

Total

¥–

¥ 67

¥ 192

¥ 259

Millions of yen
2011
Reporting Segments
Civil
Building
Construction Engineering
Impairment losses ontangible fixed assets

¥–

¥–

Total

Other

Elimination

Total

¥–

¥ 435

¥4

¥ 439

Thousands of U.S. dollars
2012
Reporting Segments
Civil
Building
Total
Other
Elimination
Construction Engineering
Impairment losses ontangible fixed assets

$–

$–

$–

$ 815

$ 2,336

Total$ 3,15133