Exhibit 2

FINANCIAL STATEMENTS OF JAPAN INTERNATIONAL COOPERATION AGENCY (“JICA”)

AND REPORTS OF THE INDEPENDENT AUDITOR

 

Index to Financial Statements
General Account
Independent Auditor’s Report			F-2
Balance Sheet (as of March 31, 2025)			F-6
Statement of Administrative Service Operation Cost (April  1, 2024—March 31, 2025)			F-8
Statement of Income (April 1, 2024—March 31, 2025)			F-9
Statement of Changes in Net Assets (April 1, 2024—March  31, 2025)			F-10
Statement of Cash Flows (April 1, 2024—March 31, 2025)			F-11
Basis of Presenting Financial Statements			F-12
Significant Accounting Policies			F-12
Notes to the Financial Statements			F-15
The Accompanying Supplementary Schedules			F-20
Finance and Investment Account
Independent Auditor’s Report			F-43
Balance Sheet (as of March 31, 2025)			F-47
Statement of Administrative Service Operation Cost (April  1, 2024—March 31, 2025)			F-49
Statement of Income (April 1, 2024—March 31, 2025)			F-50
Statement of Changes in Net Assets (April 1, 2024—March  31, 2025)			F-51
Statement of Cash Flows (April 1, 2024—March 31, 2025)			F-52
Basis of Presenting Financial Statements			F-53
Significant Accounting Policies			F-53
Notes to the Financial Statements			F-57
The Accompanying Supplementary Schedules			F-70

 

F-1

Independent Auditor’s Report

Mr. Akihiko Tanaka, President

Japan International Cooperation Agency

The Audit of the Financial Statements

Opinion

We have audited the accompanying financial statements of the general account of Japan International Cooperation Agency (the Agency), which comprise the balance sheet as at March 31, 2025 and the statements of administrative service operation cost, income, changes in net assets, and cash flows for the year then ended, and a summary of significant accounting policies and notes to the financial statements, and the accompanying supplementary schedules (except for the information described based on the financial statements and business reports relating to the associated public interest corporations).

In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of the general account of the Agency as at March 31, 2025, and its financial performance and its cash flows for the year then ended in accordance with accounting principles for incorporated administrative agencies generally accepted in Japan.

Basis for Opinion

We conducted our audit in accordance with auditing standards for incorporated administrative agencies generally accepted in Japan. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Agency in accordance with the ethical requirements that are relevant to our audit of the financial statements in Japan, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. The basis includes the fact that no such fraud or error, or illegal acts, of the president, other executive officers or staff members that would result in material misstatement in the financial statements was found, to the extent that we conducted our audit. The audit we conducted is not intended to express an opinion on whether there was any fraud or error, or illegal acts, of the president, other executive officers or staff members, which would not result in material misstatement in the financial statements.

Other Information

The other information comprises the information included in the Annual Report that contains audited financial statements but does not include the financial statements and our auditor’s report thereon. President is responsible for preparation and disclosure of the other information. The Agency Auditor is responsible for overseeing the Agency’s reporting process of the other information.

 

F-2

Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated.

If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Responsibilities of President, and the Agency Auditor for the Financial Statements

President is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles for incorporated administrative agencies generally accepted in Japan, and for such internal control as president determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error or illegal acts.

The Agency Auditor is responsible for overseeing the Agency’s financial reporting process.

Auditor’s Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, or illegal acts, and to issue an auditor’s report that includes our opinion. Misstatements can arise from fraud or error, or illegal acts, and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

As part of an audit in accordance with auditing standards for incorporated administrative agencies generally accepted in Japan, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

 

•

Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, or illegal acts, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.

 

•

Consider internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances for our risk assessments, while the purpose of the audit of the financial statements is not expressing an opinion on the effectiveness of the Agency’s internal control.

 

•

Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by president.

 

•

Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation in accordance with accounting principles for incorporated administrative agencies generally accepted in Japan.

 

F-3

 

•

Plan and conduct audit with adequate attention being paid to the possibility that any fraud or error, or illegal acts, of the president, other executive officers or staff members may result in material misstatement in the financial statements.

We communicate with the Agency Auditor regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide the Agency Auditor with a statement that we have complied with the ethical requirements regarding independence that are relevant to our audit of the financial statements in Japan, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, actions taken to eliminate threats or safeguards applied to reduce threats to an acceptable level.

Fee-related Information

The fees for the audits of the financial statements of the Agency and other services provided by us and other EY member firms for the year ended March 31, 2025 are 54 million yen and 309 million yen, respectively.

 

F-4

Interest Required to Be Disclosed by the Certified Public Accountants Act of Japan

Our firm and its designated engagement partners do not have any interest in the Agency which is required to be disclosed pursuant to the provisions of the Certified Public Accountants Act of Japan.

 

Ernst & Young ShinNihon LLC

Tokyo, Japan

September 26, 2025

/s/ Kenji Izawa

Kenji Izawa

Designated Engagement Partner

Certified Public Accountant

/s/ Hiroshi Nishida

Hiroshi Nishida

Designated Engagement Partner

Certified Public Accountant

/s/ Yoshiyuki Hashimoto

Yoshiyuki Hashimoto

Designated Engagement Partner

Certified Public Accountant

 

F-5

Balance Sheet

(as of March 31, 2025)

General Account

 

														(Unit: Yen)
Assets
I  Current assets
Cash and deposits							225,370,447,869
Stored goods			794,103,958
Payments for uncompleted contracted programs			1,112,121,012				1,906,224,970
Advance payments							19,760,810,062
Prepaid expenses							7,272,429
Accrued income							38,273,083
Accounts receivable							3,967,966,569
Contra-accounts for provision for bonuses*							1,418,011,853
Short-term loans for development projects							6,500,000
Suspense payments							73,193,382
Advance paid							6,645,528
Total current assets											252,555,345,745
II  Non-current assets
1 Tangible assets
Buildings			46,224,550,916
Accumulated depreciation			(22,486,334,259)				23,738,216,657
Structures			1,543,489,364
Accumulated depreciation			(1,200,262,880)				343,226,484
Machinery and equipment			255,538,913
Accumulated depreciation			(192,227,530)				63,311,383
Vehicles			2,435,345,005
Accumulated depreciation			(1,797,457,514)				637,887,491
Tools, furniture, and fixtures			2,201,187,795
Accumulated depreciation			(1,269,840,530)				931,347,265
Land			14,177,935,458
Accumulated impairment losses			(8,710,639)				14,169,224,819
Construction in progress							443,556,443
Total tangible assets							40,326,770,542
2 Intangible assets
Trademark rights							2,820,389
Telephone subscription rights							338,100
Software							2,131,486,201
Software in progress							946,477,464
Total intangible assets							3,081,122,154
3 Investments and other assets
Long-term deposits							2,000,000
Long-term loans for development projects							39,000,000
Long-term prepaid expenses							93,874
Expected amount to be granted from the national budget*							443,520
Prepaid pension expenses							2,439,400,446
Contra-accounts for provision for retirement benefits*							13,472,902,259
Long-term guarantee deposits							1,595,066,012
Total investment and other assets							17,548,906,111
Total non-current assets											60,956,798,807
Total assets															313,512,144,552

 

F-6

Balance Sheet (Continued)

(as of March 31, 2025)

 

Liabilities
I  Current liabilities
Operational grant liabilities*			67,544,806,217
Funds for grant aid			144,383,065,050
Donations received*			442,103,930
Accounts payable			25,358,213,492
Accrued expenses			232,260,299
Lease obligations			48,979,212
Advance payments received			1,521,986,910
Deposits received			158,092,756
Unearned revenue			403,700
Provision for bonuses			1,418,011,853
Total current liabilities							241,107,923,419
II  Non-current liabilities
Contra-accounts for assets*			8,702,564,068
Long-term lease obligations			69,125,776
Provision for retirement benefits			13,472,902,259
Assets retirement obligations			400,813,796
Total non-current liabilities							22,645,405,899
Total liabilities											263,753,329,318
Net assets
I  Capital
Government investment			61,152,034,684
Total capital							61,152,034,684
II  Capital surplus
Capital surplus			12,073,562,977
Accumulated other administrative service operation costs*
Accumulated depreciation not included in expenses*			(22,164,319,349)
Accumulated impairment losses not included in expenses*			(8,710,639)
Accumulated interest expenses not included in expenses*			(6,944,352)
Accumulated disposal and sale differential not included in expenses*			(13,082,438,181)
Total capital surplus							(23,188,849,544)
III  Retained earnings
Reserve fund carried over from the previous Mid-term Objective period*			3,405,665,060
Reserve fund			7,330,136,398
Unappropriated income for the current fiscal year			1,059,828,636
(Total income for the current fiscal year)			(1,059,828,636)
Total retained earnings							11,795,630,094
Total net assets											49,758,815,234
Total liabilities and net assets											313,512,144,552

*	Accounts prepared in accordance with special accounting practices of incorporated administrative agencies.

 

F-7

Statement of Administrative Service Operation Cost

(April 1, 2024-March 31, 2025)

General Account

 

								(Unit: Yen)
I		Expenses in the statement of income
		Operating expenses			281,254,362,365
		General administrative expenses			13,494,973,110
		Financial expenses			382,970,217
		Miscellaneous losses			13,769,144
		Extraordinary losses			39,133,413
		Total expenses in the statement of income							295,185,208,249
II		Other administrative service operation costs
		Depreciation not included in expenses*			170,412,506
		Interest expenses not included in expenses*			(59,879	)
		Disposal and sale differential not included in expenses*			1,069,669,780
		Total other administrative service operation costs							1,240,022,407
III		Administrative service operation cost							296,425,230,656

* Accounts prepared in accordance with special accounting practices of incorporated administrative agencies.

 

F-8

Statement of Income

(April 1, 2024-March 31, 2025)

General Account

 

										(Unit: Yen)
Ordinary expenses
Operating expenses
Expenses for priority sectors and regions			88,878,468,153
Expenses for JICA Development Studies			5,997,223,962
Expenses for private sector partnership			4,199,062,194
Expenses for domestic partnership and acceptance of foreign human resources			19,053,901,181
Expenses for strengthen foundations for operational implementation			3,698,084,218
Expenses for indirect operations			43,798,450,595
Expenses for grant aid			113,492,865,561
Expenses for facilities			539,921,665
Expenses for contracted programs			8,492,450
Expenses for donation projects			72,217,724
Depreciation			1,515,674,662				281,254,362,365
General administrative expenses							13,494,973,110
Financial expenses
Foreign exchange losses			382,970,217				382,970,217
Miscellaneous losses							13,769,144
Total ordinary expenses											295,146,074,836
Ordinary revenues
Revenues from operational grants*							170,283,871,688
Revenues from grant aid							113,492,865,561
Revenues from contracted programs
Revenues from contracted programs from Japanese government and local governments			8,512,488				8,512,488
Revenues from development projects							125,922
Revenues from emigration projects							637,754
Revenues from subsidy for facilities*							539,478,145
Revenues from expected amount to be granted from the national budget*							443,520
Donations*							72,217,724
Reversal of allowance for loan losses							5,927,567
Revenues from contra-accounts for provision for bonuses*							1,418,011,853
Revenues from contra-accounts for provision for retirement benefits*							1,306,076,526
Reversal of contra-accounts for assets*							1,587,207,941
Financial revenues
Interest income			173,559,833				173,559,833
Miscellaneous income							2,018,355,533
Total ordinary revenues											290,907,292,055
Ordinary income											(4,238,782,781	)
Extraordinary losses
Loss on disposal of non-current assets							36,884,883
Loss on sales of non-current assets							2,248,530				39,133,413
Extraordinary income
Reversal of contra-accounts for assets*							39,133,413
Gain on sales of non-current assets							26,610,153				65,743,566
Net income											(4,212,172,628	)
Reversal of reserve fund carried over from the previous Mid-term Objective period*											5,272,001,264
Total income for the current fiscal year											1,059,828,636

* Accounts prepared in accordance with special accounting practices of incorporated administrative agencies. 

 

F-9

Statement of Changes in Net Assets

(April 1, 2024-March 31, 2025)

 

General Account								(Unit: Yen)

 

		I  Capital								II  Capital surplus																								III  Retained earnings (Loss carried forward)
		Government investment				Total capital				Capital surplus				Accumulated other administrative service operation cost																Total capital surplus				Reserve fund carried over from the previous Mid-term Objective period				Reserve fund												Total retained earnings (Loss carried forward)				Total net assets
														Accumulated depreciation not included in expenses				Accumulated impairment losses not included in expenses				Accumulated interest expenses not included in expenses				Accumulated disposal and sale differential not included in expenses																Unappropriated income for the current fiscal year (Unappropriated loss for the current fiscal year)				Total income for the current fiscal year (Total loss for the current fiscal year)
Balance at the beginning of the fiscal year			61,152,034,684				61,152,034,684				9,293,122,531				(21,993,906,843	)			(8,710,639	)			(7,004,231	)			(12,012,768,401	)			(24,729,267,583	)			8,677,666,324				2,675,435,036				4,654,701,362				—				16,007,802,722				52,430,569,823
Changes during the period
I   Changes in capital during the period
II   Changes in capital surplus during the period
Purchase of non-current assets											2,780,440,446																				2,780,440,446																								2,780,440,446
Sale and retirement of non-current assets															888,104,596												(1,069,669,780	)			(181,565,184	)																							(181,565,184	)
Depreciation															(1,058,517,102	)															(1,058,517,102	)																							(1,058,517,102	)
Increase in asset retirement obligations due to passage of time																							59,879								59,879																								59,879
III   Changes in retained earnings (loss carried forward) during the period
(1)   Appropriation of income or loss
Increase in reserve fund derived from profit appropriation																																							4,654,701,362				(4,654,701,362	)							—				—
(2)   Others
Net income (Net loss)																																											(4,212,172,628	)			(4,212,172,628	)			(4,212,172,628	)			(4,212,172,628	)
Reversal of reserve fund carried over from the previous Mid-term Objective period																																			(5,272,001,264	)							5,272,001,264				5,272,001,264				—				—
Total changes during the period			—				—				2,780,440,446				(170,412,506	)			—				59,879				(1,069,669,780	)			1,540,418,039				(5,272,001,264	)			4,654,701,362				(3,594,872,726	)			1,059,828,636				(4,212,172,628	)			(2,671,754,589	)
Balance at the end of the fiscal year			61,152,034,684				61,152,034,684				12,073,562,977				(22,164,319,349	)			(8,710,639	)			(6,944,352	)			(13,082,438,181	)			(23,188,849,544	)			3,405,665,060				7,330,136,398				1,059,828,636				1,059,828,636				11,795,630,094				49,758,815,234

 

F-10

Statement of Cash Flows

(April 1, 2024-March 31, 2025)

General Account

 

		(Unit: Yen)
I. Cash flows from operating activities
Payments of operating expenses			(151,976,674,308)
Payments for grant aid			(114,602,644,876)
Payments of personnel expenses			(18,684,336,397)
Payments for contracted programs			(515,092,253)
Payments for other operations			(936,684,168)
Proceeds from operational grants			167,141,389,000
Proceeds from grant aid			101,269,038,385
Proceeds from contracted programs			244,306,524
Proceeds from interest on loans			764,033
Proceeds from donations			112,081,489
Proceeds from other operations			1,999,792,959
Subtotal			(15,948,059,612)
Interest income received			162,211,331
Payments to National Treasury			(81,901,703)
Net cash used in operating activities			(15,867,749,984)
II. Cash flows from investing activities
Payments for purchase of non-current assets			(3,456,136,548)
Proceeds from sales of non-current assets			44,139,064
Proceeds from subsidy for facilities			1,857,732,278
Proceeds from collection of loans			15,876,527
Payments into time deposits			(697,200,000,000)
Proceeds from time deposit refund			684,390,000,000
Payments for purchase of negotiable deposits			(71,800,000,000)
Proceeds from refund of negotiable deposits			71,800,000,000
Net cash used in investing activities			(14,348,388,679)
III. Cash flows from financing activities
Repayments of lease obligations			(67,995,069)
Net cash used in financing activities			(67,995,069)
IV. Effect of exchange rate changes on funds			(346,736,186)
V.  Net increase (decrease) in funds			(30,630,869,918)
VI. Funds at the beginning of the fiscal year			237,001,317,787
VII. Funds at the end of the fiscal year			206,370,447,869

 

F-11

Basis of Presenting Financial Statements

The Japan International Cooperation Agency (the “JICA”) was established in October 2003 pursuant to the Act on General Rules for Incorporated Administrative Agencies and the Act of the Incorporated Administrative Agency—Japan International Cooperation Agency. The fiscal year end of JICA is March 31.

The accompanying financial statements of JICA as of March 31,2025 have been prepared in accordance with accounting principles for incorporated administrative agencies generally accepted in Japan. These principles differ in many respects from the application and disclosure requirements of the accounting principles for business enterprises generally accepted in Japan.

JICA’s operations are separated into two accounts for accounting purposes pursuant to Article 17 of the Act of the Incorporated Administrative Agency—Japan International Cooperation Agency (the “JICA Act”): (a) a General Account, which is largely funded by management grants from the Japanese government, and (b) a Finance and Investment Account, which is funded through capital contributions and borrowings from the Japanese government, bonds issued to investors and interest and revenues generated by JICA from loans disbursed.

The financial statements are stated in Japanese yen, the currency of the country in which JICA is incorporated and operates.

Significant Accounting Policies

General Account

1. Revenue recognition method of operational grants

Revenue from operational grants is recognized in profit or loss on a systematic basis over the periods in which JICA recognizes based on the level of operational achievement.

The term-based revenue recognition method is applied for administrative operations except for the operations which have been specified as having a direct correlation between the operational achievement and operational grants.

Due to the difficulty to estimate the budget and terms, as well as to specify a correlation between the operational achievement and operational grants, the revenue from disaster relief operations, which are relief operations for unexpected disasters during the period, is therefore recognized as the related expenses when incurred.

2. Depreciation method

(1) Tangible assets (except for lease assets)

Straight-line method

 

F-12

The useful lives of major assets are as follows:

 

The estimated depreciation costs for specific depreciable assets (Accounting Standards for Incorporated Administrative Agencies No. 87) and specific removal costs, etc., associated with asset retirement obligations (Accounting Standards for Incorporated Administrative Agencies No. 91) are indirectly deducted from capital surplus and reported as accumulated depreciation not included in expenses.

(2) Intangible assets (except for lease assets)

Straight-line method

Software used by JICA is depreciated over its useful life (5 years).

(3) Leased assets

Leased assets are depreciated by the straight-line method over the lease term. Depreciation for leased assets is calculated with zero residual value being assigned to the asset.

3. Provision for bonuses

Provision for bonuses is calculated and provided for based on estimated amounts of future payments attributable to the services that have been rendered by officers and employees applicable to the current fiscal year. Contra-accounts for provision for bonuses are equally accrued since the financial source is secured by operational grants.

4. Provision for retirement benefits

Provision for retirement benefits is calculated and provided for based on estimated amounts of future payments attributable to the retirement of employees. It is accrued in line with the retirement benefit obligations and estimated plan assets applicable to the fiscal year ended March 31, 2025. If the estimated plan assets exceed the estimated retirement benefit obligations at the end of the fiscal year, the excess is recorded as prepaid pension expenses. In calculating the retirement benefit obligations, the estimated amount of retirement benefit payments is attributed to the period based on the straight-line basis. The profit and loss appropriation method for actuarial differences and past service costs is as follows:

Actuarial differences are recognized as a lump-sum gain or loss in the fiscal year in which they occur.

Past service costs are recognized as a lump-sum gain or loss in the fiscal year in which they occur.

 

F-13

The financial source for lump-sum severance indemnities is secured by operational grants. The estimated amount of retirement benefits is reported as Provision for retirement benefits and Contra-accounts for provision for retirement benefits. Therefore, an equal amount is recorded for both accounts. The financial source for defined benefit corporate pension plan contributions and reserve shortfall is secured by operational grants. Therefore, an equal amount of Provision for retirement benefits is accrued as Contra-accounts for provision for retirement benefits.

5. Basis and standard for the accrual of allowance and loss contingencies

Allowance for loan losses

To provide for loan losses, JICA records the estimated amount of default as an allowance, taking into account the transition rate to delinquent loans for the ordinary loans. For doubtful loans, collectability is taken into consideration individually and the estimated amount of default is recorded as an allowance.

6. Standard and method for the valuation of inventories

Stored goods

Stored goods valuation is based on the lower of cost or market using the first-in, first-out (FIFO) method.

7. Translation standard for foreign currency-denominated assets and liabilities into yen

Foreign currency monetary claims and liabilities are translated into Japanese yen at the spot exchange rate at the balance sheet date. Exchange differences are recognized in profit or loss.

8. Standard and method for the expected amount to be granted from the national budget

Among the expenses required for projects related to facility reserve subsidies, the expected amount to be granted from the national budget in subsequent years is accounted for in accordance with Article 84 of the Accounting Standards for Independent Administrative Agencies.

9. Accounting treatment for consumption taxes

Consumption taxes and local consumption taxes are included in transaction amounts.

10. Accounting principles and procedures to be adopted in cases where the accounting treatment is not clearly defined in the relevant accounting standards

Accounting treatment for grant aid

Funds received from the Japanese government for grant aid are recorded as Funds for grant aid in current liabilities at the time of receipt.

Subsequently, when funds are granted to the government of the recipient countries, in accordance with their purposes, they are recorded in operating expenses as Expenses for grant aid. The same amount is transferred from current liabilities to Revenues from grant aid in ordinary income.

 

F-14

Notes to the financial statements

General Account

(Balance Sheet)

1.	Impairment of Fixed Assets

Fixed assets for which indications of impairment have been identified.

(1) Overview of the Purpose, Type, Location, and Book Value of Fixed Assets with indications of impairment.

 

								(Unit: Yen)
Asset Name		Purpose		Location		Type		Book Value
Sudan Office		Overseas    Office		Khartoum, Republic   of Sudan		Building			10,069,864

(2) Overview of recognized indications of impairment

Due to the ongoing military conflicts in Sudan, the staff at the Sudan office have evacuated, and the office lease contract has been temporarily terminated. Consequently, indications of impairment have been recognized for tangible fixed assets located in Sudan as of the balance sheet date, despite the possibility of reopening the office in the same facility once the situation improves.

(3) Basis for recognizing multiple fixed assets as a single unit for determining the presence of indications of impairment

Fixed assets with recognized indications of impairment are considered to provide services as a single unit because they fulfill their intended functions as building, including internal construction, electrical equipment, air conditioning, security equipment, and other facilities.

(4) Basis for Unrecognizing Impairment

Impairment is not recognized because there is a prospect of resuming the use of these assets if the local security situation improves.

 

2.	Donated funds for grant aid

Grant aid is received in the form of donated funds from the government of Japan. JICA administers this grant aid based on grant agreements with the government of the recipient country. At the end of the fiscal year 2024, the outstanding balance of unexecuted grant agreements stood at ¥285,873,401,904.

 

3.	Assets acquired through the investment from the government to Incorporated Administrative Agency

Of accumulated other administrative service operation cost, the amount of assets acquired through the investment from the government is ¥25,675,021,521.

 

F-15

(Statement of Administrative Service Operation Cost)

1.	Cost being borne by the public for the operation of Incorporated Administrative Agency

 

Administrative service operation cost			¥296,425,230,656
Self-revenues, etc.			¥(2,300,019,407)
Opportunity cost			¥559,689,770
Cost being borne by the public for the operation of Incorporated Administrative Agency			¥294,684,901,019

 

2.	Method for computing opportunity cost

(1) Interest rate used to compute opportunity cost concerning government investment

1.485% with reference to the yield of 10-year fixed-rate Japanese government bonds at March 31, 2025.

(2) Method for computing opportunity cost for public officers temporarily transferred to JICA

Of the estimated increase in retirement allowance during service rendered in JICA, costs are calculated in accordance with JICA’s internal rules.

(Statement of Cash Flows)

The funds shown in the statement of cash flows consist of cash, deposit accounts, and checking accounts.

 

1.	Breakdown of balance sheet items and ending balance of funds

(as of March 31, 2025)

 

Cash and deposits			¥225,370,447,869
Time deposits			¥(19,000,000,000)
Ending balance of funds			¥206,370,447,869

2. Description of significant non-cash transactions

(1) Assets acquired under finance leases

 

Tools, furniture, and fixtures		¥	11,100,100

(Financial Instruments)

1. Status of financial instruments

The General Account’s fund management is limited to short-term deposits and public and corporate bonds while fund-raising consists mainly of operational grants approved by the competent minister. The General Account does not borrow from the government fund for Fiscal Investment and Loan Program (FILP), nor does it borrow funds from financial institutions or issue FILP Agency Bonds.

2. Fair value of financial instruments

Cash is excluded from the note, as well as Deposits and Accounts payable because they are settled in a short period, and thus their fair value approximates their carrying amount.

(Retirement benefits)

1. Overview of retirement benefit plans

To provide retirement benefits for employees, JICA has a defined benefit pension plan comprised of a defined benefit corporate pension plan and a lump-sum severance indemnity plan, and a defined contribution plan comprised of a defined contribution pension plan.

 

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2. Defined benefit pension plan

(1) The changes in the retirement benefit obligation are as follows:

 

		(Unit: Yen)
Retirement benefit obligation at the beginning of the fiscal year			22,179,775,086
Current service cost			947,861,387
Interest cost			190,816,330
Actuarial differences			421,695,243
Retirement benefit paid			(1,683,668,469	)
Past service cost			0
Contribution by employees			57,875,797
Retirement benefit obligation at the end of the fiscal year			22,114,355,374

(2) The changes in the plan assets are as follows:

 

 

		(Unit: Yen)
Plan assets at the beginning of the fiscal year			11,396,148,255
Expected return on plan assets			224,962,927
Actuarial differences			(592,984,903	)
Contribution by JICA			389,526,362
Retirement benefit paid			(394,674,877	)
Contribution by employees			57,875,797
Plan assets at the end of the fiscal year			11,080,853,561

(3) Reconciliation of the retirement benefit obligations and plan assets and provision for retirement benefits and prepaid pension expenses in the balance sheets

 

		(Unit: Yen)
Funded retirement benefit obligation			8,641,453,115
Plan assets			(11,080,853,561	)
Unfunded benefit obligations of funded pension plan			(2,439,400,446	)
Unfunded benefit obligations of unfunded pension plan			13,472,902,259
Subtotal			11,033,501,813
Unrecognized actuarial differences			0
Unrecognized past service cost			0
Net amount of assets and liabilities in the balance sheets			11,033,501,813
Provision for retirement benefits			13,472,902,259
Prepaid pension expenses			2,439,400,446
Net amount of assets and liabilities in the balance sheets			11,033,501,813

 

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(4) Components of retirement benefit expenses

 

		(Unit: Yen)
Current service cost			947,861,387
Interest cost			190,816,330
Expected return on plan assets			(224,962,927	)
Realized actuarial differences			1,014,680,146
Amortization of past service cost			0
Extraordinary additional retirement payments			0
Total			1,928,394,936

(5) Major components of plan assets

Percentages of components to the total are as follows:

 

Bonds			47	%
Stocks			41	%
General account of life insurance company			4	%
Others			8	%
Total			100	%

(6) Method of determining the long-term expected rate of return on plan assets

The long-term expected rate of return on plan assets is determined based on components of plan assets, the actual historical returns, and market condition and other factors.

(7) Assumptions used

Principal assumptions used in actuarial calculations at the end of the fiscal year

 

Discount rate		Defined benefit corporate pension plan			1.07	%
		Retirement benefits			0.74	%
Long-term expected rate of return on plan assets					2.00	%

3. Defined contribution plan

The amount of contribution required to be made to the defined contribution plan is ¥44,372,996.

(Lease transactions)

1. Future minimum lease payments related to operating lease transactions

 

Future minimum lease payments due within one year of the balance sheet date			¥26,371,082
Future minimum lease payments corresponding to periods more than one year from the balance sheet date			¥10,070,604

2. The impact of the finance lease transactions on the profit or loss in the current fiscal year was ¥576,823. Total income for the current fiscal year after the deduction of this amount was ¥1,059,251,813.

(Asset retirement obligations)

1. Overview of asset retirement obligations

In accordance with a building lease agreement, JICA has the obligation to restore the head office building to its original state. Restoration costs are reasonably estimated and recognized as asset retirement obligations.

 

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2. Amount and calculation method of asset retirement obligations

The estimate for the asset retirement obligations assumes a five-year lease period for the projected period of use and a discount rate between (0.048)% and 0.529%.

3. Changes in the total amount of asset retirement obligations in the current fiscal year

 

		(Unit: Yen)
Balance at the beginning of the fiscal year			400,873,675
Increase related to acquisition of tangible assets			—
Adjustment resulting from passage of time			(59,879)
Decrease due to settlement of asset retirement obligations			—
Balance at the end of the fiscal year			400,813,796

(Significant contractual liabilities)

The amount of Significant contractual liabilities expected to be paid from the following fiscal year is ¥4,928,220,000

(Significant subsequent events)

Not applicable

 

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The Accompanying Supplementary Schedules

General Account

 

(1)

Details of acquisition and disposal of non-current assets, depreciation (including depreciation not included in expenses, in accordance with “No. 87, Accounting for the Depreciation of Specific Depreciable Assets” and “No. 91, Accounting for Specific Removal Costs, etc., associated with Asset Retirement Obligations”), and accumulated impairment losses

 

(Unit: Yen)
Type				Balance at the  beginning of  the period				Increase during the period				Decrease during the period				Balance at the end of the period				Accumulated depreciation								Accumulated impairment losses								Net assets at the end of the period				Remarks
																								Depreciation during the period								Impairment losses  during the period
Tangible assets (Depreciation included in expenses)		Buildings			4,293,739,582				235,722,599				18,627,167				4,510,835,014				1,640,306,101				270,061,610				0				0				2,870,528,913
		Structures			227,704,167				2,363,660				4,753,229				225,314,598				134,204,989				13,892,160				0				0				91,109,609
		Machinery and equipment			211,076,556				7,401,116				14,270,734				204,206,938				146,628,143				14,929,398				0				0				57,578,795
		Vehicles			2,439,554,949				141,930,196				149,128,867				2,432,356,278				1,794,767,660				186,049,725				0				0				637,588,618
		Tools, furniture, and fixtures			2,128,237,913				131,151,531				406,575,520				1,852,813,924				1,103,073,554				189,829,155				0				0				749,740,370
		Total			9,300,313,167				518,569,102				593,355,517				9,225,526,752				4,818,980,447				674,762,048				0				0				4,406,546,305
Tangible assets (Depreciation not included in expenses)		Buildings			39,992,229,375				2,776,940,215				1,055,453,688				41,713,715,902				20,846,028,158				1,042,788,702				0				0				20,867,687,744
		Structures			1,318,913,017				3,500,231				4,238,482				1,318,174,766				1,066,057,891				15,367,878				0				0				252,116,875
		Machinery and equipment			55,784,238				0				4,452,263				51,331,975				45,599,387				360,522				0				0				5,732,588
		Vehicles			2,988,727				0				0				2,988,727				2,689,854				0				0				0				298,873
		Tools, furniture, and fixtures			354,006,563				0				5,632,692				348,373,871				166,766,976				0				0				0				181,606,895
		Total			41,723,921,920				2,780,440,446				1,069,777,125				43,434,585,241				22,127,142,266				1,058,517,102				0				0				21,307,442,975
Tangible assets (Non-depreciable assets)		Land			14,177,935,458				0				0				14,177,935,458				0				0				8,710,639				0				14,169,224,819
		Construction in progress			1,701,285,427				269,704,476				1,527,433,460				443,556,443				0				0				0				0				443,556,443
		Total			15,879,220,885				269,704,476				1,527,433,460				14,621,491,901				0				0				8,710,639				0				14,612,781,262
Total tangible assets		Buildings			44,285,968,957				3,012,662,814				1,074,080,855				46,224,550,916				22,486,334,259				1,312,850,312				0				0				23,738,216,657
		Structures			1,546,617,184				5,863,891				8,991,711				1,543,489,364				1,200,262,880				29,260,038				0				0				343,226,484
		Machinery and equipment			266,860,794				7,401,116				18,722,997				255,538,913				192,227,530				15,289,920				0				0				63,311,383
		Vehicles			2,442,543,676				141,930,196				149,128,867				2,435,345,005				1,797,457,514				186,049,725				0				0				637,887,491
		Tools, furniture, and fixtures			2,482,244,476				131,151,531				412,208,212				2,201,187,795				1,269,840,530				189,829,155				0				0				931,347,265
		Land			14,177,935,458				0				0				14,177,935,458				0				0				8,710,639				0				14,169,224,819
		Construction in progress			1,701,285,427				269,704,476				1,527,433,460				443,556,443				0				0				0				0				443,556,443
		Total			66,903,455,972				3,568,714,024				3,190,566,102				67,281,603,894				26,946,122,713				1,733,279,150				8,710,639				0				40,326,770,542
Intangible assets (Depreciation included in expenses)		Trademark rights			11,290,558				0				0				11,290,558				8,470,169				384,598				0				0				2,820,389
		Software			5,171,865,799				1,620,802,840				19,651,372				6,773,017,267				4,641,531,066				840,528,016				0				0				2,131,486,201
		Total			5,183,156,357				1,620,802,840				19,651,372				6,784,307,825				4,650,001,235				840,912,614				0				0				2,134,306,590
Intangible assets (Depreciation not included in expenses)		Trademark rights			1,139,550				0				0				1,139,550				1,139,550				0				0				0				0
		Total			1,139,550				0				0				1,139,550				1,139,550				0				0				0				0
Intangible assets (Non-depreciable assets)		Telephone subscription rights			969,150				0				631,050				338,100				0				0				0				0				338,100
		Software in progress			1,535,968,343				825,317,118				1,414,807,997				946,477,464				0				0				0				0				946,477,464
		Total			1,536,937,493				825,317,118				1,415,439,047				946,815,564				0				0				0				0				946,815,564
Total intangible assets		Trademark rights			12,430,108				0				0				12,430,108				9,609,719				384,598				0				0				2,820,389
		Telephone subscription rights			969,150				0				631,050				338,100				0				0				0				0				338,100
		Software			5,171,865,799				1,620,802,840				19,651,372				6,773,017,267				4,641,531,066				840,528,016				0				0				2,131,486,201
		Software in progress			1,535,968,343				825,317,118				1,414,807,997				946,477,464				0				0				0				0				946,477,464
		Total			6,721,233,400				2,446,119,958				1,435,090,419				7,732,262,939				4,651,140,785				840,912,614				0				0				3,081,122,154
Investments and other assets		Long-term deposits			2,000,000				0				0				2,000,000				0				0				0				0				2,000,000
		Long-term loans for development projects			45,500,000				0				6,500,000				39,000,000				0				0				0				0				39,000,000
		Long-term loans for emigration projects			20,573,886				0				20,573,886				0				0				0				0				0				0
		Allowance for loan losses (non-current)			(17,930,357	)			0				(17,930,357	)			0				0				0				0				0				0
		Claims probable in bankruptcy, claims probable in rehabilitation, and other pertaining to loans for emigration projects			30,562,179				0				30,562,179				0				0				0				0				0				0
		Allowance for loan losses (non-current)			(30,562,179	)			0				(30,562,179	)			0				0				0				0				0				0
		Long-term prepaid expenses			4,330,622				2,760,648				6,997,396				93,874				0				0				0				0				93,874
		Expected amount to be granted from the national budget			0				443,520				0				443,520				0				0				0				0				443,520
		Long-term guarantee deposits			1,715,969,464				74,479,133				195,382,585				1,595,066,012				0				0				0				0				1,595,066,012
		Prepaid pension expenses			2,548,652,822				(109,252,376	)			0				2,439,400,446				0				0				0				0				2,439,400,446
		Contra-accounts for provision for retirement benefits			13,332,279,653				1,429,616,198				1,288,993,592				13,472,902,259				0				0				0				0				13,472,902,259
		Total			17,651,376,090				1,398,047,123				1,500,517,102				17,548,906,111				0				0				0				0				17,548,906,111

(Note)  Contra-accounts for provision for retirement benefits is described in No. 4 of Significant Accounting Policies.

 

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