|
 |
Financial Information:
Annual Report 2003
| Notes
to Consolidated Financial Statements |
NSK Ltd. and Subsidiaries
For the year ended March 31, 2003
| 11. Shareholders’
Equity |
 |
In accordance with the Commercial Code of Japan (the “Code”),
the Company has provided a legal reserve, which was included in
retained earnings. The Code provides that an amount equal to at
least 10% of the amount to be disbursed as a distribution of earnings
be appropriated to the legal reserve until the total of such reserve
and the additional paid-in capital account equals 25% of the common
stock account. The legal reserve amounted to ¥10,292 million
($85,767 thousand) and ¥10,292 million at March 31, 2003 and
2002, respectively.
The Code provides that neither additional paid-in capital
nor the legal reserve is available for dividends, but both may
be used to reduce or eliminate a deficit by resolution of the
shareholders or may be transferred to common stock by resolution
of the Board of Directors.
On October 1, 2001, an amendment (the “Amendment”)
to the Code became effective. The Amendment provides that if the
total amount of additional paid-in capital and the legal reserve
exceeds 25% of the amount of common stock, the excess may be distributed
to the shareholders either as a return of capital or as dividends
subject to the approval of the shareholders. In addition, the
Amendment eliminates the stated par value of the Company’s
outstanding shares, which resulted in all outstanding shares having
no par value as of October 1, 2001. The Amendment also provides
that all share issuances after September 30, 2001 will be of shares
with no par value. Prior to the date on which the Amendment came
into effect, the Company‘s shares had a par value of ¥50.
| 12. Research
and Development Costs |
|
Research and development costs included in selling, general
and administrative expenses and manufacturing costs for the years
ended March 31, 2003 and 2002 amounted to ¥8,307 million ($69,225
thousand) and ¥8,036 million, respectively.
| 13. Commitments
and Contingencies |
|
(a) At March 31, 2003, the Company and its consolidated
subsidiaries had the following contingent liabilities:
| As of March 31, 2003 |
Millions
of yen |
Thousands
of
U.S. dollars |
| As guarantor of indebtedness of: |
|
|
| Employees |
¥315 |
$2,625 |
| Affiliated companies |
598 |
4,983 |
|
| |
¥914 |
$7,617 |
|
(b) Under the terms of a permit for commencing economic
activity within the Walbrzych Special Economic Zone, NSK Steering
Systems Europe (Polska) Sp.z.o.o. was/is committed to make investments
amounting to PLN198 million by December 31, 2003. NSK Steering
Systems Europe (Polska) Sp.z.o.o. made investments of PLN18 million
through December 31, 2002 in accordance with this agreement.
|
|
