Shinsho Corp.TSE: 8075

AND CONSOLIDATED SUBSIDIARIES FINANCIAL STATEMENTS (Year ended March 31, 2024) ▸ PDF

Oct 4, 2024 at 4:18 AM UTC · Issued by Shinsho Corp.

SHINSHO CORPORATION AND CONSOLIDATED SUBSIDIARIES FINANCIAL STATEMENTS

(Year ended March 31, 2024)

2024

SHINSHO CORPORATION AND CONSOLIDATED SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

		March 31,	March 31,	2024
	2024	2023	Thousands of
ASSETS	(Millions of Yen) (Millions of Yen)	U.S. Dollars

Current assets
Cash and deposits…………………………………………………	12,309	12,801	81,300
Notes and accounts receivable - trade………………………………	194,452	193,903	1,284,274
Electronically recorded monetary claims - operating… ……………	19,495	16,813	128,762
Inventories… ………………………………………………………	76,634	78,468	506,135
Advance payments… ………………………………………………	23,461	31,373	154,954
Other………………………………………………………………	11,470	11,053	75,754
Allowance for doubtful accounts……………………………………	(240)	(947)	(1,586)
Total current assets… …………………………………………		337,583	343,466	2,229,597
Non-current assets
Property, plant and equipment
Buildings and structures… …………………………………………	3,297	3,293	21,776
Machinery, equipment and vehicles…………………………………	2,561	1,701	16,914
Land…………………………………………………………………	1,236	1,254	8,166
Construction in progress… …………………………………………	752	1,351	4,966
Other………………………………………………………………	981	946	6,485
Total property, plant and equipment……………………………		8,828	8,547	58,309
Intangible assets, investments and other assets
Goodwill… …………………………………………………………	418	−	2,764
Investment securities… ……………………………………………	42,665	35,802	281,786
Long-term loans receivable…………………………………………	1,905	1,839	12,582
Retirement benefit asset… …………………………………………	27	6	179
Deferred tax assets (Note 6)………………………………………	1,419	1,986	9,377
Other………………………………………………………………	6,210	7,604	41,014
Allowance for doubtful accounts……………………………………	(2,649)	(4,160)	(17,502)
Total intangible assets, investments and other assets… ………		49,996	43,078	330,203
Total non-current assets… ……………………………………………
58,824	51,625	388,512

Total ASSETS……………………………………………………………	396,408	395,092	2,618,110

See accompanying notes to consolidated financial statements.

		March 31,	March 31,	2024
	2024	2023	Thousands of
LIABILITIES	(Millions of Yen) (Millions of Yen)	U.S. Dollars

Current liabilities	163,542	174,612	1,080,131
Notes and accounts payable - trade…………………………………
Electronically recorded obligations - operating… …………………	19,126	14,711	126,319
Short-term borrowings (Note 3)… …………………………………	40,158	45,552	265,230
Income taxes payable… ……………………………………………	2,214	2,073	14,622
Contract liabilities… ………………………………………………	8,196	8,292	54,137
Provision for bonuses… ……………………………………………	1,516	1,449	10,015
Deposits received……………………………………………………	21,132	28,391	139,568
Other………………………………………………………………	25,064	22,800	165,539
Total current liabilities… ………………………………………		280,951	297,884	1,855,564
Non-current liabilities	20,599	18,011	136,051
Long-term borrowings (Note 3)… …………………………………
Guarantee deposits received………………………………………	1,732	1,701	11,442
Deferred tax liabilities (Note 6)… …………………………………	4,252	2,295	28,084
Provision for share awards for directors (and other officers)… ……	67	28	442
Provision for retirement benefits for directors (and other officers)…		−	12	−
Retirement benefit liability (Note 8)… ……………………………	828	692	5,468
Provision for loss on guarantees… …………………………………		−	120	−
Other………………………………………………………………	497	448	3,285
Total non-current liabilities… …………………………………		27,976	23,311	184,775
Total LIABILITIES… …………………………………………………
308,927	321,195	2,040,339
NET ASSETS
Shareholders' equity	5,650	5,650	37,317
Share capital…………………………………………………………
Capital surplus………………………………………………………	2,615	2,608	17,271
Retained earnings……………………………………………………	63,612	57,069	420,136
Treasury shares……………………………………………………	(241)	(243)	(1,593)
Total shareholders' equity………………………………………		71,636	65,084	473,131
Accumulated other comprehensive income	9,702	4,561	64,079
Valuation difference on available-for-sale securities… ……………
Deferred gains or losses on hedges… ………………………………	132	34	873
Foreign currency translation adjustment……………………………	4,510	2,787	29,792
Total accumulated other comprehensive income… ……………		14,345	7,384	94,745
Non-controlling interests	1,497	1,428	9,892
Total NET ASSETS… …………………………………………………
87,480	73,896	577,769
Total LIABILITIES and NET ASSETS…………………………………
396,408	395,092	2,618,110

See accompanying notes to consolidated financial statements.

SHINSHO CORPORATION AND CONSOLIDATED SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

		March 31,	March 31,	2024
	2024	2023	Thousands of
	(Millions of Yen) (Millions of Yen)	U.S. Dollars
Net sales (Note 12,13,14)… ……………………………………………	591,431	584,856	3,906,157
Cost of sales… …………………………………………………………	552,287	546,338	3,647,626
Gross profit… ………………………………………………………		39,144	38,518	258,530
Selling, general and administrative expenses……………………………	25,847	25,058	170,714
Operating profit… …………………………………………………		13,296	13,459	87,816
Non-operating income	325	226	2,151
Interest income………………………………………………………
Dividend income… …………………………………………………	1,218	954	8,046
Gain on valuation of derivatives… …………………………………	294	31	1,945
Reversal of provision for loss on guarantees… ……………………	120	−	793
Gain on sales of non-current assets…………………………………		−	424	−
Gain on sales of investment securities………………………………	652	485	4,306
Reversal of allowance for doubtful accounts… ……………………	1,157	61	7,644
Gain on sale of investments in capital………………………………	29	−	192
Miscellaneous income………………………………………………	348	527	2,299
		4,145	2,711	27,381
Non-operating expenses	2,082	1,397	13,754
Interest expenses… …………………………………………………
Loss on cession of an obligation… …………………………………	523	822	3,457
Foreign exchange losses… …………………………………………	915	747	6,044
Loss on valuation of investment securities… ………………………		−	7	−
Loss on valuation of investments in capital…………………………	33	−	221
Miscellaneous losses… ……………………………………………	428	373	2,827
		3,982	3,348	26,305
Profit before income taxes,	13,459	12,822
non-controlling interests and equity method income… ……………
Income taxes (Note 4)	3,981	3,553	26,298
Current………………………………………………………………
Deferred… …………………………………………………………	506	517	3,342
		4,487	4,071	29,640
Profit attributable to non-controlling interests… ………………………	(17)	304	(114)
Share of profit of entities accounted for using equity method… ………	123	749	812
Profit attributable to owners of parent………………………………		9,111	9,196	60,178

Profit per share		(yen)	(yen)	(dollars)
1,035.38	1,042.65	6.84

See accompanying notes to consolidated financial statements.

SHINSHO CORPORATION AND CONSOLIDATED SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS

		March 31,	March 31,	2024
	2024	2023	Thousands of
Share capital	(Millions of Yen) (Millions of Yen)	U.S. Dollars
5,650	5,650	37,317
Balance at beginning of period… …………………………………
Balance at end of period… …………………………………………		5,650	5,650	37,317
Capital surplus	2,608	2,608	17,227
Balance at beginning of period… …………………………………
Purchase of shares of consolidated subsidiaries… …………………	6	−	44
Balance at end of period… …………………………………………		2,615	2,608	17,271
Retained earnings	57,069	50,618	376,918
Balance at beginning of period… …………………………………
Dividends of surplus… ……………………………………………	(2,568)	(2,745)	(16,961)
Profit attributable to owners of parent………………………………	9,111	9,196	60,178
Balance at end of period… …………………………………………		63,612	57,069	420,136
Valuation difference on available-for-sale securities	4,561	3,587	30,126
Balance at beginning of period… …………………………………
Net changes of items other than shareholders' equity… ……………	5,140	974	33,953
Balance at end of period… …………………………………………		9,702	4,561	64,079
Deferred gains or losses on hedges	34	(287)	229
Balance at beginning of period… …………………………………
Net changes of items other than shareholders' equity… ……………	97	321	643
Balance at end of period… …………………………………………		132	34	873
Foreign currency translation adjustment	2,787	779	18,413
Balance at beginning of period… …………………………………
Net changes of items other than shareholders' equity… ……………	1,722	2,008	11,379
Balance at end of period… …………………………………………		4,510	2,787	29,792
Treasury shares	(243)	(17)	(1,610)
Balance at beginning of period… …………………………………
Purchase of treasury shares… ………………………………………	(0)	(226)	(4)
Disposal of treasury shares… ………………………………………	3	−	21
Balance at end of period… …………………………………………		(241)	(243)	(1,593)
Non-controlling interests	1,428	814	9,432
Balance at beginning period………………………………………
Net changes of items other than shareholders' equity… ……………	69	613	459
Balance at end of period… …………………………………………		1,497	1,428	9,892
Total net assets… ………………………………………………………
87,480	73,896	577,769

Number of authorized shares… …………………………………………		(thousands)	(thousands)
27,000	27,000
Number of issued shares (including treasury shares)……………………	8,860	8,860

See accompanying notes to consolidated financial statements.

SHINSHO CORPORATION AND CONSOLIDATED SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

		March 31,	March 31,	2024
	2024	2023	Thousands of
Operating activities	(Millions of Yen) (Millions of Yen)	U.S. Dollars

Profit before income taxes,	13,459	12,822	88,891
non-controlling interests and equity method income… ………
Depreciation…………………………………………………………	1,506	1,520	9,951
Amortization of goodwill…………………………………………	38	−	251
Increase (Decrease) of reserve and allowance………………………	(2,599)	(18)	(17,170)
Interest and dividend income… ……………………………………	(1,544)	(1,181)	(10,198)
Interest expenses… …………………………………………………	2,082	1,397	13,754
Loss (Gain) on sales of investments in capital……………………	(29)	−	(192)
Loss (Gain) on valuation of investment securities… ………………		−	7	−
Loss (Gain) on sales of investment securities… ……………………	(652)	(485)	(4,306)
Loss on valuation of investments in capital…………………………	33	−	221
Decrease (Increase) in trade receivables… …………………………	328	7,681	2,170
Decrease (Increase) in inventories… ………………………………	5,459	(19,827)	36,055
Increase (Decrease) in trade payables… ……………………………	(9,361)	10,975	(61,830)
Increase (Decrease) in accrued expenses……………………………	1,135	(737)	7,496
Decrease (Increase) in accounts receivable - other… ………………	34	(923)	229
CF from other oprating activities……………………………………	3,611	37	23,851
Subtotal…………………………………………………………		13,502	11,268	89,176
Interest and dividends received… …………………………………	1,633	1,574	10,786
Interest paid…………………………………………………………	(2,099)	(1,386)	(13,865)
Income taxes paid…………………………………………………	(3,944)	(3,792)	(26,054)
Net cash provided by operating activities………………………		9,090	7,664	60,041
Investing activities	(901)	(1,108)	(5,952)
Purchase of property, plant and equipment… ………………………
Proceeds from sales of property, plant and equipment… …………	208	488	1,379
Purchase of investment securities and others… ……………………	(262)	(171)	(1,730)
Proceeds from sales of investment securities and others……………	1,624	788	10,729
Purchase of shares of subsidiaries and associates… ………………		−	(1,008)	−
Proceeds from sales of shares of subsidiaries and associates… ……		−	153	−
Purchase of investments in capital of subsidiaries	(2,293)	−	(15,144)
resulting in change in scope of consolidation… ………………
Short-term loan advances…………………………………………	(449)	(0)	(2,968)
Proceeds from collection of short-term loans receivable…………	6	1	40
Long-term loan advances……………………………………………	(89)	(222)	(593)
Proceeds from collection of long-term loans receivable……………		−	5	−
CF from other investing activities… ………………………………	(633)	(448)	(4,184)
Net cash used in investing activities……………………………		(2,789)	(1,523)	(18,424)
Financing activities	(7,744)	(2,521)	(51,146)
Net increase (decrease) in short-term borrowings… ………………
Proceeds from long-term borrowings… ……………………………	5,600	4,250	36,985
Repayments of long-term borrowings………………………………	(2,499)	(7,925)	(16,507)
Repayments of finance lease liabilities… …………………………	(22)	(9)	(148)
Dividends paid………………………………………………………	(2,568)	(2,745)	(16,961)
Dividends paid to non-controlling interests…………………………	(9)	(66)	(60)
CF from other financing activities… ………………………………	2	(170)	17
Net cash used in financial activities… …………………………		(7,240)	(9,188)	(47,821)
Effect of exchange rate change on cash and cash equivalents… ………	447	450	2,954
Net increase (decrease) in cash and cash equivalents……………………		(492)	(2,597)	(3,249)
Cash and cash equivalents at beginning of period… ……………………		12,800	15,397	84,543
Cash and cash equivalents at end of period… …………………………		12,308	12,800	81,293

See accompanying notes to consolidated financial statements.

SHINSHO CORPORATION AND CONSOLIDATED SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

1. Basis of presenting consolidated financial statements

The accompanying consolidated financial statements of Shinsho Corporation (the "Company") and its consolidated subsidiaries have been prepared in accordance with the provisions set forth in the Japanese Financial Instruments and Exchange Act and its related accounting regulations and in conformity with accounting principles generally accepted in Japan ("Japanese GAAP"), which are different in certain respects as to the application and disclosure requirements of International Financial Reporting Standards.

Japanese yen figures less than a million yen are rounded down to the nearest million yen and U.S. dollar figures less than a thousand dollars are rounded down to the nearest thousand dollars, except for per share data.

In preparing these consolidated financial statements, certain reclassifications and rearrangements have been made to the consolidated financial statements issued domestically in order to present them in a form which is more familiar to readers outside Japan. In addition, certain reclassifications have been made in the 2023 financial statements to conform to the classifications used in 2024. The accompanying consolidated financial statements are stated in Japanese yen, the currency of the country in which the Company is incorporated and principally operates. The translation of Japanese yen amounts into U.S. dollar amounts are included solely for the convenience of readers outside Japan and have been made at the rate of ¥151.41 to $1, the rate of exchange at March 31, 2024. Such transaction should not be construed as representations that Japanese yen amounts could be converted into U.S. dollars at that or any other rate.

2. Summary of significant accounting policies

(1) Scope of consolidation

The Company had 40 subsidiaries (majority-owned companies) at March 31, 2024. The accompanying consolidated financial statements include the accounts of the Company and 40 of its subsidiaries for the year ended March 31, 2024, which are listed below:

Shinsho American Corporation Shinsho Steel Products Corporation Shinsho Non-ferrous Corporation Thai Escorp Ltd.

Kobelco Trading (Shanghai) Co., Ltd.

Suzhou Shinko-shoji Material Co., Ltd. Matsubo Corporation

33 other consolidated subsidiaries

(2) Elimination and combination

For the purposes of preparing the consolidated financial statements of the Company and its consolidated subsidiaries, all significant inter-company transactions, account balances and unrealized profits among the Company and its consolidated subsidiaries have been entirely eliminated to "Non-controlling Interests". In the elimination, any differences between the cost of investments in subsidiaries and the amount of underlying equity in net assets of the subsidiaries is treated "Goodwill" or "Gain on bargain purchase". Goodwill is recorded on balance sheet as an asset and amortized within twenty years by cause. Gain on bargain purchase is recorded on the income statement as non-operating income.

(3) Equity method of accounting for investments in affiliates

The Company had 21 affiliates (companies owned from 20% to 50% actually) at March 31, 2024. The equity method is applied to these 16 investments.

(4) Cash and cash equivalents

Cash and cash equivalents include all highly liquid investments. Cash equivalents are generally at the maturity of three months or less and readily convertible to cash. Cash equivalents near maturity indicate insignificant risk of changes in value because of changes in interest rates.

(5) Investment securities

Securities are classified into the categories based on the purpose of holding, which can result in the different measurement and can account for the changes in the fair value. Debt securities that are intended to be held to maturity ("held-to-maturity debt securities") are measured at amortized cost in the balance sheet. Securities other than held-to-maturity debt securities and the equity investment in subsidiaries and affiliates ("other securities") are measured at the fair value.

The difference between the fair value and the historical cost is recorded in the category of shareholder's equity. The historical cost is determined by the moving average cost. Securities that have no market price are stated at their historical cost.

(6) Inventories

Inventories are mainly stated at cost determined by the moving average method (unless market value of inventories declines significantly and is not expected to recover to cost, in such cases costs are reduced to net realizable values).

(7) Property, plant and equipment

Property, plant and equipment are stated at cost. Depreciation of property, plant and equipment are computed principally by the declining balance method. However, depreciation of buildings booked from April 1, 1998 is computed using the straight-line method.

(8) Long-lived assets

The Company reviews its long-lived assets for the impairment whenever events or changes in circumstance indicate the carrying amount of an asset or asset group may not be recoverable.

An impairment loss would be recognized if the carrying amount of an asset or asset group exceeds the sum of the undiscounted future cash flows expected as a result of the continuous use and eventual disposition of the asset or asset group.

The impairment loss would be measured when the carrying amount of the asset exceeds its recoverable amount, which is higher of the discounted cash flows from the continuous use and eventual disposition of the asset or the net selling price at disposition.

(9) Employees' retirement benefits

The Company and certain subsidiaries have defined contribution pension plans.

Certain consolidated subsidiaries estimated net defined benefit liability and retirement benefit costs using the simplified method whereby the retirement benefit obligations amount that would be payable if the eligible employees terminate the employment on the consolidated balance sheet date.

(10) Allowance for doubtful accounts

The allowance for doubtful accounts is provided in amounts which are sufficient to cover possible losses on collection. It consists of individually estimated uncollectible amounts and amounts calculated using the actual rate of historical bad debt.

(11) Provision for bonuses

The provision for bonuses is accrued at the fiscal year end to which such bonuses are attributable.

Provision for share awards for directors (and other officers) The provision for share awards for directors (and other officers) is provided at the estimated of stock delivery and share-based remuneration according to the points allocated to directors (and other officers) in accordance with the internal rule for stock delivery.
Provision for retirement benefits for directors (and other officers) The Provision for retirement benefits for directors (and other officers) is provided at retirement benefits to be paid to directors and other officers in accordance with the internal rule in One consolidated subsidiary.

(14) Provision for loss on guarantees

The provision for loss on guaranees is provided at the estimated of loss arising from the guarantee obligation which considering the financial position of the guarantee.

(15) Finance leases

Lease assets related to finance lease transactions that do not involve the transfer of ownership are depreciated on a straight-line basis, with the lease period used their useful life and no residual value.

(16) Deferred tax assets and liabilities

The asset and liability approach is used to recognize deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes.

(17) Translation of foreign currency accounts

Current and non-current monetary assets and liabilities denominated by foreign currencies are translated into Japanese yen at the exchange rates at the end of fiscal year, and the resulting exchange gains and losses are recognized in the income statement. Balance sheets of consolidated overseas subsidiaries are translated into Japanese yen at the exchange rates at the end of fiscal year except for stockholders' equity accounts, which are translated at the historical rates. Income statements of consolidated overseas subsidiaries are translated at the average exchange rates.

The resulting translation adjustments are reflected in the consolidated financial statements as "Foreign currency translation adjustments".

(18) Derivative financial instruments

The Company and its subsidiaries use derivative financial instruments to manage its exposures to fluctuations in foreign exchange rates and commodity prices.

Derivatives include foreign currency forward contracts, currency option trading and commodities futures, which are utilized by the Company to reduce foreign currency exchange rate risks and commodity price risks. The Company and its subsidiaries do not enter into derivatives for trading or speculative purposes.

The Company and its subsidiaries have taken various steps, including the establishment of internal management rules, to ensure that transactions are implemented appropriately and that risk is managed. Gains and losses on hedge of existing assets or liabilities are included in carrying amounts of those assets or liabilities and ultimately recognized the income as a part of those carrying amounts. Gains and losses related to qualifying hedges of firm commitments and anticipated transactions are deferred and recognized the income, or adjustments of carrying amounts, when the hedged transaction occurs.

(19) Net income per share

The computation of net income per share is based on the weighted average number of issued shares of common stock outstanding during the relevant period.

3. Short-term loans payable and long-term loans payable

Short-term loans payable at March 31, 2024 and 2023 consisted of the following:

Short-term loans payable principally	(¥ millions) ($ thousands)
2024	2023	2024
from banks at March 31, 2024 and
2023 represent short-term notes
with the interest on the principal at	37,125	43,084	245,199
the average rate of both 3.571%.

Long-term loans payable at March 31, 2024 and 2023consisted of the following:

Long-term loans payable from	(¥ millions) ($ thousands)
2024	2023	2024
banks, insurance companies and
other financial institutions due
through 2031, at the averaged	23,632	20,480	156,082
rate of 0.667%
Less current portion	(3,032)	(2,468)	(20,030)
	20,599	18,011	136,051

The aggregate annual maturity of long-term loans payable at

March 31, 2024 were as follows:
Year ending March 31	(¥ millions)	($ thousands)
2026	7,149	47,220
2027	2,950	19,483
2028	3,300	21,795
2029	2,500	16,511
2030	4,700	31,041

4. Income taxes

Income taxes applicable to the Company and its domestic subsidiaries comprise of the corporation tax, inhabitants' taxes and the enterprise tax, which in the aggregate resulted in the normal statutory tax rate of approximately 30.6% for both 2024 and 2023. The effective tax rates reflected in the statements of operations differ from the statutory tax rates. The difference is due primarily to the timing difference in the recognition of certain income and expenses for tax and financial reporting purposes, and the effect of permanent non-deductible expenses.

5. Contingent liabilities

The Company and certain consolidated subsidiaries guarantee the following obligations, including loans payable to financial institutions, etc., of companies other than consolidated subsidiaries. For obligations with reguarantees, the amount borne by the Company is stated.

		(¥ millions) ($ thousands)
Vina Washin Aluminum Co., Ltd.	2024	2023	2024
605	871	4,002
Pertama Ferroalloys Sdn. Bhd.	432	599	2,856
Kobe Special Steel Wire Products
(Pinghu) Co., Ltd.	368	317	2,435
Total		1,407	1,788	9,293

Notes regarding trade notes receivable discounted or transferred by endorsement at March 31, 2024 and 2023 were as follows:

(¥ millions) ($ thousands)

2024 2023 2024

Maximum amount of obligations to
repurchase transferred receivables
under certain conditions	2,572	2,522	16,988
Trade notes discounted	263	288	1,743

6. Deferred income taxes

Significant components of deferred tax assets and liabilities at

March 31, 2024 and 2023, were as follows:
	(¥ millions) ($ thousands)
Deferred tax assets:	2024	2023	2024

Allowance for doubtful accounts	656	1,238	4,333
Bad debts expenses	162	138	1,075
Provision for bonuses	479	460	3,163
Inventories	445	419	2,943
Membership	56	63	375
Impairment loss of fixed assets	38	39	256
Net defined benefit liability	220	192	1,456
Investment securities	1,432	1,421	9,462
Directors' retirement benefits	−	4	−
Loss carryforwards	1,195	745	7,895
Valuation difference on available
-for-sale securities	21	33	140
Other	1,727	1,334	11,410
Valuation allowance	(2,779)	(2,323)	(18,356)
Gross deferred tax assets	3,657	3,768	24,157

(¥ millions) ($ thousands)2024 2023 2024

Deferred tax liabilities:

Unrealized gain on available-for-sale securities (4,145) (2,036) (27,377)

Undistributed earnings of affiliates	(1,903)	(1,884)	(12,569)
Other	(441)	(156)	(2,916)
Gross deferred tax liabilities	(6,490)	(4,077)	(42,863)
Net deferred tax assets, liabilities (2,832)	(309)	(18,706)

Application of "Partial Amendments to Accounting Standard for Tax Effect Accounting" (Accounting Standards Board of Japan (ASBJ) Statement No. 28) has a material impact on the amount of tax loss carryforwards. Accordingly, the Company presents tax loss carryforwards and deferred tax assets by expiry date.

Tax loss carryforwards:	(¥ millions)	($ thousands)
2024	2023	2024
Within 1 years	54		6	362
After 1 to 2 years	46		49	306
After 2 to 3 years	79		43	524
After 3 to 4 years	73		67	486
After 4 to 5 years	58		44	383
After 5 years	882		534	5,827
Total	1,195		745	7,895
Valuation allowance:	(¥ millions)	($ thousands)
2024	2023	2024
Within 1 years	(54)		(6)	(362)
After 1 to 2 years	(46)		(49)	(306)
After 2 to 3 years	(79)		(433)	(524)
After 3 to 4 years	(73)		(67)	(486)
After 4 to 5 years	(58)		(44)	(383)
After 5 years	(350)		(534)	(2,313)
Total	(662)		(745)	(4,378)
Deferred tax assets:	(¥ millions)	($ thousands)
2024	2023	2024
Within 1 years	−		−	−
After 1 to 2 years	−		−	−
After 2 to 3 years	−		−	−
After 3 to 4 years	−		−	−
After 4 to 5 years	0		−	3
After 5 years	532		−	3,513
Total	532		−	3,517

Reconciliation of the differences between the statutory tax rate and the effective tax rate is as follows:

Statutory tax rate	2024	2023
30.6%	30.6%
Permanently nondeductible expenses	0.8	0.5
Permanently nondeductible gain	(0.3)	(0.0)
Taxation on per capita basis	0.3	0.3
Share of loss (profit) of entities
accounted for using equity method	(0.3)	(1.7)
Gain on bargain purchase	0.1	−
Change in valuation allowance	3.4	(1.8)
Undistributed earnings	(0.1)	3.8
Other	(1.5)	(1.6)
Effective tax rate	33.0%	30.0%

7. Lease transactions

・Operating lease

Under non-cancelable operating leases, future minimum lease payments at March 31, 2024 were ¥353 millions ($2,335 thousands) of which ¥143 millions ($950 thousands) is due within one year.

8. Retirement and severance benefits plans

The Company has defined contribution plan. Certain consolidated subsidiaries, differently, have defined contribution plan and defined benefit plan.

Certain consolidated subsidiaries have the smaller enterprise retirement allowance mutual aid or special retirement allowance mutual aid. With application of defined benefit plan, certain consolidated subsidiaries would calculate retirement benefit liability and cost by simplified method.

		(¥ millions) ($ thousands)
Balance at beginning of year	2024	2023	2024
692	658	4,573
Retirement benefit expenses	213	138	1,411
Post-employment benefits paid	(43)	(59)	(287)
Employer contributions	(34)	(44)	(228)
Decrease due to change in scope
of consolidation		−	−	−
Balance at end of year		828	692	5,468

Reconciliation between the liability recorded in the consolidated balance sheet and the balances of defined benefit obligation and plan assets as of March 31, 2024 were as follows:

Earlier from Shinsho

Shinsho Corp.: Establishment of Shinsho Australia Pty. Ltd. BranchApr 2, 2012

All Shinsho news releases