LIABILITIES AND SHAREHOLDERS' EQUITY	Millions of yen		Thousands of U.S. dollars (Note 1)
/	1997	1996	1997
Current Liabilities:
Short-term borrowings (Note 6)	Y 2,420	Y 1,486	$ 19,516
Convertible bonds due
within one year (Note 6)	39,017	--	314,653
Notes and accounts payable:
Trade	194,092	170,862	1,565,258
Non-consolidated subsidiaries and
associated companies	29,819	23,941	240,476
	223,911	194,803	1,805,734
Income taxes payable (Note 5)	50,327	30,718	405,863
Accrued expenses	63,360	63,598	510,968
Accrued bonuses to employees	36,615	34,214	295,282
Other current liabilities	53,332	31,903	430,097
Total current liabilities	468,982	356,722	3,782,113
Long-Term Liabilities:
Long-term debt (Note 6)	80,375	155,847	648,185
Accrued retirement benefits (Note 7)	134,463	123,773	1,084,379
Other long-term liabilities	5,210	4,630	42,017
Total long-term liabilities	220,048	284,250	1,774,581
Minority Interests	34,417	31,907	277,556
Contingent Liabilities (Note 8)
Shareholders' Equity (Note 9):
Common stock, par value 50 yen per share:
Authorized: 1,491,339,000 shares and
1,500,000,000 shares in
1997 and 1996, respectively
Issued and outstanding: 881,222,271
shares and 869,853,386 shares in
1997 and 1996, respectively	129,897	112,211	1,047,556
Additional paid-in capital	208,517	190,857	1,681,589
Legal reserve	28,661	27,955	231,137
Retained earnings	611,305	573,079	4,929,879
Less: Treasury common stock	(2)	(2)	(16)
Total shareholders' equity	978,378	904,100	7,890,145
Total	Y 1,701,825	Y 1,576,979	$ 13,724,395

---

| A MESSAGE FROM THE CHAIRMAN AND PRESIDENT | DENSO IS... |
| GLOBAL SCOPE | PUBLIC-INTEREST ACTIVITIES |
| FINANCIAL SECTION | INVESTOR INFORMATION |