BALANCE SHEET (Translation)
As of March 31, 2009
(Millions of yen)
Account item
ASSETS
Current assets
Cash and deposits
Notes receivable-trade
Installment contract receivables
Lease receivables
Lease investment assets
Loans receivables to customers
Other loans receivables to customers
Lease contract receivables
Other operating assets
Marketable securities
Advance on contracts
Prepaid expenses
Accrued income
Short-term loans receivables
Deferred tax assets
Other current assets
Allowance for doubtful receivables
Fixed assets
Tangible assets
Property for lease and rent
Property for lease and rent
Allowance for loss on disposal of
property for lease and rent
Advances on property for lease and
rent
Amount
1,240,376
52,627
1,691
213,747
106,235
554,027
99,600
127,379
2,835
22,459
520
2,495
5,731
873
68,770
7,282
9,667
(35,570)
138,293
33,517
31,968
32,988
(1,129)
110
193
2,579
3,237
98,191
20,518
25,753
26,849
Stockholders’ equity
Capital stock
Capital surplus
Other capital surplus
Retained earnings
Earned surplus reserve
Other retained earnings
Long-term deferred tax assets
Long-term money deposited
Other investments
Allowance for doubtful receivables
Total assets
5,509
Unappropriated
298
Valuation and translation adjustments
Net unrealized gain on
available-for-sale securities
Deferred gains (losses) on hedges
10,441
4,258
7,796
(3,233)
1,378,670
Total net assets
Total liabilities and net assets
1
17,756
7,868
110
7,391
17,091
9,831
69
31,299
885
1,970
590,113
6,017
512,695
53,480
407
NET ASSETS
6,584
54,840
Long-term deferred income
(1)
Intangible assets
747,651
6,034
20,515
247,204
2,000
278,354
44,429
11,473
573
575
1,548
Amount
Guarantee deposits received
Provision for employees’
retirement benefits
Provision for directors’ retirement
benefits
Other long-term liabilities
Total liabilities
Own-used assets
Property for lease and rent
Property for lease and rent
Allowance for loss on disposal of
property for lease and rent
Goodwill
Software
Other intangible assets
Investments and other assets
Investment securities
Investments in affiliated companies
Long-term loans receivables
Claims provable in bankruptcy, in
rehabilitation and other
Long-term prepaid expenses
Account item
LIABILITIES
Current liabilities
Notes payable-trade
Accounts payable-trade
Short-term borrowings
Current portion of bonds
Current portion of long-term debt
Commercial papers
Payables under securitized lease
receivables
Lease payables
Accounts payables
Accrued income taxes
Accrued expenses
Advances received on lease
contracts
Deposits received
Deferred income
Unrealized gross profits on
installment contracts
Provision for bonuses
Other current liabilities
Long-term liabilities
Bonds
Long-term debt
Long-term payables under
securitized lease receivables
4,546
21
1,472
1,337,765
41,222
2,000
36,264
36,264
2,958
412
2,545
2,545
(317)
404
(722)
40,905
1,378,670
STATEMENT OF OPERATIONS (Translation)
For the year ended March 31, 2009
(Millions of yen)
Account item
Amount
Revenues
122,219
Lease revenue
Installment sales
27,388
Finance revenue
4,135
Other revenue
5,384
159,129
Costs
110,017
Cost of lease
24,184
Cost of installment sales
560
Cost of finance
4,570
Cost of other sales
5,955
Financing costs
Gross profit
145,287
13,841
48,000
Selling, general and administrative expenses
Operating loss
34,158
Non-operating income
Interest and dividends received
2,292
121
Other
2,414
Non-operating expenses
901
Interest expenses
173
Other
Ordinary loss
1,075
32,819
Special gains
0
Gain on sales of investment securities
0
Special losses
444
Head office transfer cost
22
Loss on disposal of fixed assets
124
Loss on valuation of investment securities
Loss on valuation of investments in affiliated
2,682
companies
12
Loss on valuation of golf memberships
Loss before income taxes
3,285
36,104
63
Income taxes-current
(7,575)
Income taxes-deferred
Net loss
28,592
2
STATEMENT OF CHANGES IN NET ASSETS (Translation)
For the year ended March 31, 2009
(Millions of yen)
Stockholders’ equity
Capital surplus
Capital stock
Balance at March 31, 2008
Retained earnings
Other capital
surplus
─
─
2,000
66,846
Earned surplus
reserve
─
Other retained
earnings
Unappropriated
─
Total
retained
earnings
Total
stockholders’
equity
─
─
─
68,846
31,137
31,550
969
(28,592)
(28,592)
(28,592)
─
─
(Changes during the year)
Increase by share
transfers
Increase (decrease) by
merger
(30,581)
412
Net loss
Changes during the year
for items other than
stockholders’ equity (net)
Total of changes during the
year
Balance at March 31, 2009
2,000
36,264
412
2,545
2,958
41,222
2,000
36,264
412
2,545
2,958
41,222
Valuation and translation adjustments
Net unrealized
gain on
available-for-sale
securities
Balance at March 31, 2008
─
Deferred gains
(losses) on
hedges
Total valuation
and translation
adjustments
─
Total net assets
─
─
─
68,846
─
969
─
(28,592)
(Changes during the year)
Increase by share
transfers
Increase (decrease) by
merger
Net loss
Changes during the year
for items other than
stockholders’ equity (net)
Total of changes during the
year
Balance at March 31, 2009
404
(722)
(317)
(317)
404
(722)
(317)
40,905
404
(722)
(317)
40,905
3
NOTES TO FINANCIAL STATEMENTS (Translation)
For the year ended March 31, 2009
(Notes to Significant Accounting Policies)
1. Valuation basis and methods applied for assets
(1) Securities
① Trading securities……………………….
② Held-to-maturity debt securities………...
③ Investments in subsidiaries and affiliates.
④ Available-for-sale securities
Those with determinable fair values..........
At fair value based on market price etc., as of the
balance-sheet date. (The cost of securities sold is determined
by the moving-average method.)
At amortized cost or accumulated cost
At cost determined by the moving-average method
At fair value based on market price etc., as of the
balance-sheet date. (All valuation differences are reported as
a component of net assets. The cost of securities sold is
determined by the moving-average method.)
Those without determinable fair values..... At cost determined by the moving-average method
(2) Derivative financial instruments......................... At fair value
2. Methods of depreciation and amortization applied for fixed assets
(1) Property for lease and rent
Property for lease and rent is depreciated under the straight-line method within the estimated lease and rent
period, assuming that useful lives are the same as the estimated lease and rent period, and that residual values
are the disposal price estimable at the end of the estimated lease and rent period.
In some of the property for lease and rent, tangible assets are depreciated under the declining-balance method.
However, buildings (excluding improvements) acquired on or after April 1, 1998 are depreciated under the
straight-line method. Intangible assets are amortized under the straight-line method.
(2) Other fixed assets
Of the other fixed assets, tangible assets are depreciated under the declining-balance method while intangible
assets are amortized under the straight-line method. However, buildings (excluding improvements) acquired on
or after April 1, 1998 are depreciated under the straight-line method.
Cost of purchased software of internal use are amortized under the straight-line method over internal useful
lives (5 years).
3. Significant allowance and provisions
(1) Allowance for doubtful receivables
For general receivables, allowance for estimated uncollectible receivables is provided for at an adequate rate
calculated based on the probability of bankruptcy, while allowance for certain categories including seriously
doubtful receivables is provided for based on case-by-case collectability assessment.
(2) Allowance for loss on disposal of property for lease and rent
Allowance for the estimated loss is provided for the potential loss associated with disposal of the property for
lease and rent.
(3) Provision for bonuses
Of the estimated amount of bonuses payable to employees in the following fiscal year, the portion attributable
to their service during current fiscal year has been set aside as provision for employees’ bonuses.
(4) Provision for employees’ retirement benefits
4
The Company provides for the estimated year-end liabilities for retirement benefits based on the projected
benefit obligations and plan assets at the balance sheet date.
Past service liabilities are recognized in each fiscal year as they arise. Actuarial differences are charged to
income on a straight-line basis, beginning from the year after they are recognized, over the then average
remaining years of service of employees (14 to 15 years).
(5) Provision for directors’ retirement benefits
Provisions for directors’ retirement benefits are provided in accordance with the internal rules, to meet the
amount required at each balance sheet date.
4. Lease accounting
Accounting policy for revenues and costs from finance lease transactions
The Company adopts the method in which lease revenue and cost of lease are recorded at the time when lease
fees are collectible.
Accounting policy for revenues from operating lease transactions
The Company records lease revenues corresponding to the elapsed period of the lease contract term, on the
basis of the monthly lease fees collectible according to the lease contract for such contract term.
(The Additional Information)
Adoption of the accounting standards to lease transactions
For non-ownership transfer finance lease transactions, both merged subsidiaries namely Mitsui Leasing &
Development, Ltd. and Kyodo Leasing Co., Ltd. had previously accounted for as operating lease transactions.
However, they have started to treat such transactions as normal sale and purchase contracts from this fiscal year,
as a result of their adoption from the fiscal year beginning on April 1, 2008, of the “Accounting Standard for
Lease Transactions” (Accounting Standards Board of Japan (ASBJ) Statement No. 13 issued by the First
Subcommittee of the Business Accounting Council on June 17, 1993 and revised on March 30, 2007) and the
“Guidance on Accounting Standard for Lease Transactions” (ASBJ Guidance No. 16 issued by the Accounting
System Subcommittee of the Japanese Institute of Certified Public Accountants on January 18, 1994 and
revised on March 30, 2007).
(Lessor)
For non-ownership transfer finance lease transactions with lease contract dates starting prior to the beginning of
the first year adopting the aforementioned accounting standard and guidance, these merged subsidiaries namely
Mitsui Leasing & Development, Ltd. and Kyodo Leasing Co., Ltd. recorded as the value of lease investment
assets as at April 1, 2008, adequate book value (after the deduction of cumulative amount of depreciation) of
fixed assets at the end of the previous fiscal year (March 31, 2008) which is the first year adopting the
aforementioned accounting standard and guidance. Meanwhile for such transactions during the residual period
after the adoption of the aforementioned accounting standard and guidance, they allocate the sum equivalent to
interests to each period contained within the lease terms on a straight-line basis.
Non-ownership transfer finance lease transactions with lease contract dates starting after the beginning of the
first year adopting the aforementioned accounting standard and guidance generated an increase of ¥1,583
million in gross profit while a decrease of ¥1,583 million in operating loss, ordinary loss and loss before income
taxes respectively for this fiscal year, compared with the results treated by the previous accounting treatment in
5
accordance with the terms and conditions of lease contracts.
Meanwhile, the allowance for doubtful receivables was provided along with recording of lease investment
assets and, in addition, the right to receive future lease fees qualifying as extinguishment of financial assets
which was a part of securitized lease investment assets which had been hitherto treated as financial transaction
is accounted for as sale. Thus as a consequence of the adoption of the aforementioned accounting standard and
guidance, retained earnings increased by ¥4,858 million as at the merger on October 1, 2008, which consist of
¥1,489 million decrease due to the provision of allowance for doubtful receivables in recording lease
investment assets and ¥6,046 million increase due to capital gains by transfer associated with securitization of
lease receivables, on top of ¥301 million increase generated by the adoption of the accounting treatment in
accordance with the terms and conditions of sale and purchase contract to the non-ownership transfer finance
lease transactions, as compared with the conventional accounting treatment in accordance with the terms and
conditions of lease contract.
(Lessee)
The non-ownership transfer finance lease transactions with lease contract dates starting prior to the beginning
of the first year remain accounted for as operating lease transactions.
5. Accounting for installment contracts
The Company accounts for the full amount of contract as installment contract receivables upon delivery of
goods, and records installment sales and costs of installment sales as payment becomes due.
Unrealized gross profits on installment contract receivables with installment payments becoming due at later
dates are deferred.
Meanwhile, for some of the installment contracts, amount equivalent to interests is allocated to each period as
installment sales.
6. Accounting treatment for financial expenses
Total assets are divided into assets based on sales transactions and other assets, where financial expenses
corresponding to the former are recorded as financing costs under the heading of operating expenses while
financial expenses corresponding to the latter are recorded as non-operating expense, based on the balance
proportion of such assets.
Financial expenses related to the operating assets less corresponding interest received, etc. are recorded as
financing costs.
7. The method of hedge accounting
Gains or losses on derivatives are deferred until maturity of the hedged items. For interest rate swap, the
Company applies the exceptional method as far as it is qualified to the required rules.
In respect of blanket hedging of liabilities as stipulated in “Temporary Accounting and Auditing Treatment in
the Application of the Accounting Standard for Financial Instruments in Leasing Business” (Report No. 19
issued by the Industrial Auditing Committee of the Japanese Institute of Certified Public Accountants on
November 14, 2000), gains or losses thereon are deferred until maturity of the hedged items.
6
8. Translation of foreign currency accounts
All monetary receivables and payables denominated in foreign currencies are translated into Japanese yen at the
spot exchange rates on the balance sheet date, and the foreign exchange gains and losses therefrom are
recognized in the statement of income.
9. Other significant matters that serve as the basis for preparing financial statements
(1) Accounting treatment for consumption taxes
Consumption tax and local consumption tax are accounted for by the tax exclusion method.
(2) Amortization of goodwill
Goodwill is amortized over five years under the straight-line method.
(Notes to Balance Sheet)
1. Assets pledged as collateral and corresponding liabilities
(1) Assets pledged as collateral
(Millions of yen)
Installment contract receivables
6,431
Lease receivables
1,949
Lease investment assets
86,995
Other loans to customers
12,595
Marketable securities
20
Property for lease and rent
349
Investment securities
9
Total
108,351
(2) Liabilities corresponding to assets pledged as collateral
(Millions of yen)
Current portion of long-term debt
5,938
Payables under securitized lease receivables
Long-term debt
23,340
7,023
Long-term payables under securitized lease receivables
Total
53,480
89,781
2. Accumulated depreciation of tangible assets
(Millions of yen)
Property for lease and rent
28,700
Other tangible assets
1,394
Total
30,095
3. Contingent liabilities
The contingent liabilities for the subsidiaries’ borrowing liabilities etc. from the financial institutions
(Millions of yen)
Altair Lines S.A.
82,789
PT. Mitsui Leasing Capital Indonesia
14,268
Mitsui Leasing Capital Corporation
8,267
Unite Co., Ltd
1,000
Others
292
Total
106,618
7
4. Breakout of lease receivables and lease investment assets
(Millions of yen)
Lease receivables
Amount of receivables
Lease investment assets
128,226
556,114
─
78,784
Amount equivalent to interest receivables 21,991
80,872
Estimated residual value
Total
106,235
554,027
5. Notes received as guarantees
(Millions of yen)
Notes received for installment contract receivables
22,449
Notes received for lease receivables
88
Notes received for lease investment assets
8,131
Notes received for other loans to customers
408
6. Operating lease contract receivables under the remaining lease terms
(Millions of yen)
Notes received as guarantees
15
Other lease contract receivables
25,509
Total
25,524
7. Trade receivables due after one year
(Millions of yen)
Installment contract receivables
156,402
Lease receivables
75,840
Lease investment assets
372,749
Loans to customers
79,356
Other loans to customers
89,251
Lease contract receivables
97
Operating lease contract receivables under the remaining lease terms
Total
18,383
792,082
8. Receivables and payables with associated companies
(Millions of yen)
Short-term receivables
79,826
Long-term receivables
26,772
Short-term payables
7,213
Long-term payables
14
(Notes to Statement of Operations)
1. Transactions with associated companies
(Millions of yen)
Amount of operating transactions
Revenues
2,106
Costs
66
Selling, general and administrative expenses
Amount of non-operating transactions
218
2,290
8
(Notes to Statement of Changes in Net Assets)
1. Number of issued and outstanding shares
Class of shares
Number of shares at
the end of the
previous fiscal year
Number of
increased shares
during the fiscal
year
Number of
decreased shares
during the fiscal
year
Number of shares at
the end of the fiscal
year
─
21,747,378
─
21,747,378
─
4,077,528
─
4,077,528
─
25,824,906
─
25,824,906
Issued and
outstanding shares
Ordinary shares
Class I classified
share
Total
(Notes to Income Taxes)
Significant components of the Company’s deferred tax assets and liabilities
(Millions of yen)
Deferred tax assets
Excess provision for allowance for doubtful receivables
21,503
Tax loss carry-forwards
3,029
Provision for employees’ retirement benefits
1,850
Investments in affiliated companies
1,325
Other
3,481
Subtotal
31,189
Less valuation allowance
(7,899)
Total deferred tax assets
23,290
Deferred tax liabilities
Fair valuation difference of business combinations
(3,412)
Adjustment gains on securitization of lease receivables
(2,149)
Net unrealized gain on available-for-sale securities
Total deferred tax liabilities
(3)
(5,565)
Net deferred tax assets
17,724
(Notes to leased fixed assets)
In addition to fixed asset stated in the balance sheet, the Company uses information equipment and vehicles
under lease contracts.
9
(Notes to Related Party Transactions)
1. Subsidiaries, etc.
Attributes
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Name of
related
company
Kyodo Auto
Leasing, Co.,
Ltd.
Equity
ownership
percentage
Directly
100%
Nishi-Nippon
Sogo Lease
Co., Ltd.
Directly
85.10%
Altair Lines
S.A.
Directly
100%
Michinoku
Lease Co.,
Ltd.
Directly
95.00%
Kinki Sogo
Leasing Co.,
Ltd.
Directly
94.01%
Unite Co.,
Ltd.
Directly
77.77%
Mitsui CM
Leasing, Ltd.
PT. Mitsui
Leasing
Capital
Indonesia
Directly
100%
Directly
85.00%
Indirectly
14.99%
Relationship
with related
party
Loan
Loan (*1)
Doubled as
director
Receipt of the
interest
Loan
Doubled as
director
Loan (*1)
Loan
Guarantee
of liability
Description of
the transaction
Transactions
(Millions of
yen)
40,140
Account
Short-term loans
receivables
Balance
(Millions of
yen)
13,990
190
Long-term loans
receivables
11,110
126,500
Short-term loans
receivables
21,559
Long-term loans
receivables
10
Receipt of the
interest
111
Accrued income
─
Loan (*1)
815
Short-term loans
receivables
1,113
Long-term loans
receivables
12,310
Accrued income
7
Receipt of the
interest
147
Guarantee of
liabilities (*2)
82,789
Receipt of the
guarantee fee
59
Accrued income
60
78,390
Short-term loans
receivables
12,830
69
Accrued income
2
52,450
Short-term loans
receivables
8,900
Loan
Doubled as
director
Loan (*1)
Loan
Doubled as
director
Loan (*1)
Loan
Guarantee
of liability
Doubled as
director
Loan (*1)
Receipt of the
interest
Receipt of the
interest
46
─
─
20,350
Short-term loans
receivables
3,250
Receipt of the
interest
37
Long-term loans
receivables
2,500
Guarantee of
liabilities (*2)
1,000
Receipt of the
guarantee fee
0
Accrued income
0
32,800
Short-term loans
receivables
5,450
─
Loan
Doubled as
director
Loan (*1)
Receipt of the
interest
28
─
Guarantee
of liability
Doubled as
director
Guarantee of
liabilities (*2)
14,268
─
Receipt of the
guarantee fee
10
Accrued income
The terms and conditions of the above transactions and its’ policy making, etc.
(*1) The terms and conditions of the loans are on an arm’s-length basis. No collateral is received from the
borrower.
(*2) The guarantees of liabilities are for borrowings from financial institutions.
10
─
─
5
(Notes to Per Share Information)
1. Net assets per share of ordinary shares
¥1,235.00
2. Net loss per share of ordinary shares
¥1,314.75
(Notes to Business Combination)
[Purchase Method]
The Company was established on April 1, 2008 as a joint-holding company by the share transfer from Mitsui
Leasing & Development, Ltd. and Kyodo Leasing Co., Ltd., provided however that for the purpose of business
combination accounting, the transaction was done by the purchase method in which Mitsui Leasing &
Development, Ltd. was the acquiring company.
1. Outline of business combination
(1) The name of company acquired:
Kyodo Leasing Co., Ltd.
(2) Business of company acquired:
Leasing
(3) Main reason for business combination:
Expansion of business
(4) Date of business combination:
April 1, 2008
(5) Legal form of the business combination: The establishment of a joint-holding company by share transfer
(6) Name of company after the business combination:
JA Mitsui Leasing, Ltd.
(7) Ratio of voting rights acquired:
100%
2. Period of operating results of the company acquired included in the financial statement
From October 1, 2008 to March 31, 2009
3. Acquisition costs of the company acquired and its breakout
(Millions of yen)
(1) Acquisition costs
27,153
(2) Of which: consideration for the acquisition:
27,153
4. Amount of goodwill recognized, basis for recognition, method and period for amortization of goodwill
(1) Amount of goodwill recognized
¥242 million
(2) Basis for recognition:
Derived from the expenditure for the acquisition
(3) Method for amortization:
Straight-line method
(4) Period for amortization:
5 years
5. Amount and main breakout of assets received and liabilities assumed on the date of business
combination:
(Millions of yen)
Assets
619,271
Current assets
131,706
Fixed assets
487,564
Liabilities
592,359
Current liabilities
393,347
Long-term liabilities
199,012
11
[Transactions under common control]
The Company according to the approval of the extraordinary general meeting of its shareholders held on August
28, 2008, merged on October 1, 2008 with its wholly-owned subsidiary Mitsui Leasing & Development, Ltd.
and Kyodo Leasing Co., Ltd., with the Company being the surviving company.
1. Name of combined companies, their businesses, date of business combination, legal form of the business
combination, name of the company after the business combination, and outline and purpose of the
transactions
(1) Name of combined companies:
JA Mitsui Leasing, Ltd.
Mitsui Leasing & Development, Ltd.
Kyodo Leasing Co., Ltd.
(2) Businesses of combined companies:
JA Mitsui Leasing, Ltd.: Holding company
Mitsui Leasing & Development, Ltd.: Leasing
Kyodo Leasing Co., Ltd.: Leasing
(3) Date of business combination:
October 1, 2008
(4) Legal form of the business combination: Merger and acquisition with the Company being the surviving
company
(5) Name of the company after the business combination:
JA Mitsui Leasing, Ltd.
(6) Outline and purpose of the transactions: With the purpose to extend its business base to allow for further
growth towards a multi-faceted financial enterprise poised for
sustainable growth supported by the enhanced capabilities to
provide diversified services in response to a range of user needs,
the Company merged on October 1, 2008 with its
wholly-owned subsidiaries Mitsui Leasing & Development, Ltd.
and Kyodo Leasing Co., Ltd.
2. Outline of the accounting treatment implemented
The above transaction was accounted for as a transaction under common control based on the “Accounting
Standard for Business Combinations” and the “Guidance on Accounting Standard for Business Combinations
and Accounting Standard for Business Divestures.”
Since the merger took place on October 1, 2008 within the period for the fiscal year, business performance of
the absorbed companies Mitsui Leasing & Development, Ltd. and Kyodo Leasing Co., Ltd. during the period
from April 1, 2008 to September 30, 2008, is, for the purpose of the Company’s financial reporting, not
included in the Company’s statement of operations, but reflected in retained earnings as of the date of the
merger.
12
(Translation)
Audit Report
The board of corporate auditors, following deliberations on the reports made by each corporate auditor concerning
the audit of performance of duties by directors of the Company for the 1st fiscal year from April 1, 2008 to March
31, 2009, has prepared this Audit Report, and hereby reports as follows:
1. Auditing Method Used by Each Corporate Auditor and the Board of Corporate Auditors and Details Thereof
The board of corporate auditors established auditing policies, assignment of duties and other relevant matters,
and received reports from each corporate auditor regarding the progress and results of audits, as well as received
reports from the directors, other relevant personnel and the independent auditors regarding the performance of
their duties, and sought explanations as necessary.
In conformity with the corporate auditors’ auditing standard policies established by the board of corporate
auditors, and in accordance with the auditing policies, assignment of duties and other relevant matters, each
corporate auditor endeavored to gather information and to create an improved environment for auditing through
close communication with the directors, employees including those working in the Internal Audit Department and
other relevant personnel. Each corporate auditor also attended meetings of the board of directors other important
meetings, received reports from the directors, employees and other relevant personnel regarding the performance
of their duties, sought explanations as necessary, inspected documents involving important resolutions, and
examined the operations of the Company. Also, each corporate auditor monitored and verified the content and the
status of the resolution of the board of directors to establish the systems provided by Article 100, Section 1 and 3
of the Ordinance for Enforcement of the Companies Act and the systems established pursuant to such resolution
(the “Internal Control System”), which are necessary to establish the systems to ensure directors carry out their
duties in accordance with laws and regulations and the Company’s Articles of Incorporation and other systems to
ensure appropriateness of the Company’s business.
As for the subsidiaries of the Company, each corporate auditor endeavored to keep communication and shared
information with the directors, corporate auditors and other related personnel of the subsidiaries, and received
reports from the subsidiaries regarding their businesses as necessary.
Based on the foregoing method, the corporate auditors examined the business report for the fiscal year.
Furthermore, the corporate auditors monitored and verified whether the independent auditors maintained its
independence and implemented appropriate audits, as well as received reports from the independent auditors
regarding the performance of its duties and sought explanations as necessary. Each corporate auditor was notified
by the independent auditors that it has established a “system to ensure that duties of independent auditors are
being conducted properly” (matters prescribed in each item of Article 131 of the Corporate Accounting
Regulations) and that the system is developed and implemented in accordance with the “Quality Control
Standards for Audit” (Business Accounting Council, October 28, 2005) and other applicable standards, and sought
explanation as necessary.
Based on the foregoing method, the corporate auditors reviewed the financial statements for the fiscal year
(balance sheet, statement of operations, statement of changes in net assets and the related notes) and
supplementary schedules thereto.
2. Audit Results
(1) Audit Results on the Business Report, etc.
1) In our opinion, the business report fairly represents the Company’s condition in conformity with the applicable
13
laws and regulations as well as the Articles of Incorporation of the Company.
2) We have found no evidence of misconduct or material facts in violation of the applicable laws and regulations,
nor of any violation with respect to the Articles of Incorporation of the Company, related to performance of
duties by the directors.
3) In our opinion, the status of the operation and maintenance of the Internal Control System is appropriate. We
have found no issues to be mentioned on the directors’ performance of their duties with respect to the Internal
Control System.
(2) Results of Audit of the Financial Statements and Supplementary Schedules
In our opinion, the method and the results of the audit used and conducted by Deloitte Touche Tohmatsu LLC,
the independent auditors, are appropriate.
June 5, 2009
The board of corporate auditors of JA Mitsui Leasing, Ltd.
Standing corporate auditor
Akihiko Onozawa (Seal)
Standing corporate auditor
Takuo Shirakawa (Seal)
Standing corporate auditor
Hideyuki Nebashi (Seal)
Corporate auditor
Katsuhisa Kiyozuka (Seal)
(Note) Takuo Shirakawa and Hideyuki Nebashi, standing corporate auditors, and Katsuhisa Kiyozuka, corporate
auditor, are the outside corporate auditors as set forth in Article 2, Item 16 and Article 335, Section 3 of the
Companies Act.
14
(TRANSLATION)
INDEPENDENT AUDITORS' REPORT
June 3, 2009
To the Board of Directors of
JA MITSUI LEASING, Ltd.:
Deloitte Touche Tohmatsu
Designated Partner,
Engagement Partner,
Certified Public Accountant:
Yasunori Kusaka
Designated Partner,
Engagement Partner,
Certified Public Accountant:
Takeshi Nakahara
Designated Partner,
Engagement Partner,
Certified Public Accountant:
Haruhiko Ohno
Pursuant to the first item, second paragraph of Article 436 of the Companies Act, we have audited the
financial statements, namely, the balance sheet as of March 31, 2009 of JA MITSUI LEASING, Ltd. , and
the related statements of operations and changes in net assets, and the related notes for the 1st fiscal year
from April 1, 2008 to March 31, 2009, and the accompanying supplemental schedules . The above
represents a translation, for convenience only, of the original report issued in the Japanese language and
"the accompanying supplemental schedules" referred to in this report are not included in the attached
financial documents. These financial statements and the accompanying supplemental schedules are the
responsibility of the Company's management. Our responsibility is to express an opinion on these
financial statements and the accompanying supplemental schedules based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in Japan. Those
standards require that we plan and perform the audit to obtain reasonable assurance about whether the
financial statements and the accompanying supplemental schedules are free of material misstatement. An
audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial
statements and the accompanying supplemental schedules. An audit also includes assessing the
accounting principles used and significant estimates made by management, as well as evaluating the overall
financial statement and the accompanying supplemental schedules presentation. We believe that our audit
provides a reasonable basis for our opinion.
In our opinion, the financial statements and the accompanying supplemental schedules referred to above
present fairly, in all material respects, the financial position of the Company as of March 31, 2009, and the
results of its operations for the year then ended in conformity with accounting principles generally accepted
in Japan.
The Additional Information
As described in “The Additional Information”, the Company adopted “Accounting Standard for Lease
Transactions” (Accounting Standards Board of Japan (ASBJ) Statement No.13 issued by the First
Subcommittee of the Business Accounting Council on June 17, 1993 and revised on March 30, 2007) and
the “Guidance on Accounting Standard for Lease Transactions” (ASBJ Guidance No.16 issued by the
Accounting System Subcommittee of the Japanese Institute of Certified Public Accountants on January 18,
1994 and revised on March 30, 2007) from this fiscal year.
Our firm and the engagement partners do not have any financial interest in the Company for which
disclosure is required under the provisions of the Certified Public Accountants Act.
The above represents a translation, for convenience only, of the original report issued in the Japanese
language.