ANNUAL REPORT 2011 for the year ended March 31, 2011

Notes To Consolidated Financial Statements

Credit Saison Co., Ltd. and Consolidated Subsidiaries
For the Years Ended March 31, 2011 and 2010

4. Accounts Receivable Installment

As of March 31, 2011 and 2010, liquidated receivables were as follows, and the following amounts of trust beneficiary rights and other receivables generated from liquidation or operational transactions were included in accounts receivable-installment.


  Millions of yen   Thousands of U.S. dollars
2011 2010   2011
Liquidating receivables:        
Single-payment card shopping, etc. ¥112,000 ¥118,000   $1,346,963
Trust beneficiary rights and other receivables include:        
Single-payment card shopping, etc. 12,744 13,119   153,259
Acquisition from operational transaction 2 32   23

5. Lease Investment Assets

As of March 31, 2011 and 2010, liquidated lease investment assets were as follows, and the following amounts of trust beneficiary rights were included in lease investment assets.


  Millions of yen   Thousands of U.S. dollars
2011 2010   2011
Liquidating receivables ¥1,400 ¥6,000   $16,837
Trust beneficiary rights 6,881 12,030   82,759

6. Pledged Assets

As of March 31, 2011 and 2010, pledged assets and liabilities related to pledged assets were as follows:


  Millions of yen   Thousands of U.S. dollars
2011 2010   2011
Pledged assets:        
Accounts receivable-installment ¥47,500 ¥87,500   $571,257
Lease investment assets 46,669 61,631   561,261
Liabilities related to pledged assets:        
Current portion of long-term debt 15,851 13,221   190,631
Long term debt 78,318 135,910   941,887

7. Inventories

Inventories at March 31, 2011 and 2010 consisted of the following:


  Millions of yen   Thousands of U.S. dollars
2011 2010   2011
Receivable by purchase ¥12,738 ¥15,409   $153,192
Real estate for sale 229,997 204,800   2,766,046
Other 1,114 1,397   13,397
Total ¥243,849 ¥221,606   $2,932,635

8. Loan Commitments

(a) Lender

The Companies provide cashing and card loan services that supplement their credit card operations.

The unexercised loans contingent with the loan commitments in these businesses were as follows:


  Millions of yen   Thousands of U.S. dollars
2011 2010   2011
Total loan limits ¥5,710,496 ¥6,623,538   $68,677,038
Loan executions 443,428 584,560   5,332,866
  ¥5,267,068 ¥6,038,978   $63,344,172

Most of the contracts for the above loan commitments were for cashing services supplementary to credit card services furnished to the Company's cardholders, such that not all unexecuted loans will be exercised.

(b) Borrower

The Companies have concluded loan commitment contracts with 5 banks for efficient procurement of working capital.

The portion of the credit line that had not been exercised under these contracts as of March 31, 2011 and 2010 was as follows.


  Millions of yen   Thousands of U.S. dollars
2011 2010   2011
Total loan limits ¥125,000 ¥125,000   $1,503,307
Loan executions - -   -
  ¥125,000 ¥125,000   $1,503,307

9. Short-Term Loans And Long-Term Debt

Short-term loans are represented principally by 30 to 365 day notes to banks, with an average interest rate of 0.81% and 1.00% as of March 31, 2011 and 2010, respectively.

Commercial paper is issued by the Companies, with an average interest rate of 0.14% and 0.16% as of March 31, 2011 and 2010, respectively.

Long-term debt and lease obligations as of March 31, 2011 and 2010 consisted of the following:


  Millions of yen   Thousands of U.S. dollars
2011 2010   2011
Average 1.47% (2011) and 1.54% (2010) unsecured loans from banks, insurance        
companies and other financial institutions, due in installments through 2021 ¥830,595 ¥833,632   $9,989,117
0.47% to 2.41% (2011) and 0.60% to 2.41% (2010) bonds, 256,112 236,338   3,080,126
due in installments through 2017        
Lease obligations*1 5,528 3,804   66,477
Average 1.39% (2011) and 1.07% (2010) payables on under-securitized loans*2 94,169 149,131   1,132,518
Subtotal 1,186,404 1,222,905   14,268,238
Less: Current portion (201,635) (135,556)   (2,424,951)
  ¥984,769 ¥1,087,349   $11,843,287
  • *1 Because interest is included in lease obligations, presentation of the average interest rate is omitted.
  • *2 Payables under securitized lease receivables and loans result from liquidation.

The aggregate annual maturities of long-term debt subsequent to March 31, 2011 are as follows:


Year ending March 31 Millions of yen Thousands of U.S. dollars
2012¥201,635$2,424,951
2013248,5252,988,878
2014184,3392,216,944
2015218,8812,632,360
2016 and thereafter333,0244,005,105

As is customary in Japan, short-and long-term bank loans are made under general agreements that provide that additional security and guarantees for present and future indebtedness will be given upon request of the bank under certain circumstances, and that any collateral so furnished will be applicable to all indebtedness to the bank. To date, the Companies have not received any such requests from their banks.

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