Blackberry 2003 Annual Report Download - page 27

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Research฀In฀Motion฀Limited฀฀|฀฀Incorporated฀Under฀the฀Laws฀of฀Ontario฀(United฀States฀dollars,฀in฀thousands฀except฀per฀share฀data฀or฀as฀otherwise฀indicated)
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For฀the฀years฀ended฀March฀1,฀2003,฀March฀2,฀2002฀and฀February฀28,฀2001
To฀the฀Shareholders฀of฀Research฀In฀Motion฀Limited฀
Management฀of฀Research฀In฀Motion฀Limited฀is฀responsible฀for฀the฀preparation฀and฀presentation฀of฀
the฀consolidated฀nancial฀statements฀and฀all฀of฀the฀nancial฀information฀in฀this฀Annual฀Report.฀The฀
consolidated฀nancial฀statements฀were฀prepared฀in฀accordance฀with฀Canadian฀generally฀accepted฀
accounting฀principles฀and฀include฀certain฀amounts฀based฀upon฀estimates฀and฀judgements฀required฀
for฀such฀preparation.฀The฀nancial฀information฀appearing฀throughout฀this฀Annual฀Report฀is฀consistent฀
with฀the฀consolidated฀nancial฀statements.฀The฀consolidated฀nancial฀statements฀have฀been฀reviewed฀
by฀the฀Audit฀Committee฀and฀approved฀by฀the฀Board฀of฀Directors฀of฀Research฀In฀Motion฀Limited.
In฀fullling฀its฀responsibility฀for฀the฀reliability฀and฀integrity฀of฀nancial฀information,฀management฀has฀
developed฀and฀maintains฀systems฀of฀accounting฀and฀internal฀controls฀and฀budgeting฀procedures.฀
Management฀believes฀these฀systems฀and฀controls฀provide฀reasonable฀assurance฀that฀assets฀are฀
safeguarded,฀transactions฀are฀executed฀in฀accordance฀with฀management’s฀authorization฀and฀nancial฀
records฀are฀reliable฀for฀the฀preparation฀of฀accurate฀and฀timely฀consolidated฀nancial฀statements.
The฀Company’s฀Audit฀Committee฀of฀the฀Board฀of฀Directors,฀which฀consists฀entirely฀of฀non-manage-
ment฀independent฀directors,฀meets฀periodically฀with฀management฀and฀the฀independent฀auditors฀
to฀ensure฀that฀each฀is฀discharging฀its฀respective฀responsibilities,฀to฀review฀the฀consolidated฀nancial฀
statements฀and฀the฀independent฀auditors’฀report฀and฀to฀discuss฀signicant฀nancial฀reporting฀issues฀
and฀auditing฀matters.฀The฀external฀auditors฀have฀full฀and฀unrestricted฀access฀to฀the฀Audit฀Committee฀
to฀discuss฀audit฀ndings,฀nancial฀reporting฀and฀other฀related฀matters.฀The฀Audit฀Committee฀reports฀
its฀ndings฀to฀the฀Board฀of฀Directors฀for฀consideration฀when฀the฀Board฀approves฀the฀consolidated฀
nancial฀statements฀for฀issuance฀to฀the฀shareholders.
The฀consolidated฀nancial฀statements฀have฀been฀audited฀by฀Ernst฀&฀Young฀LLP฀and฀Zeifman฀and฀
Company฀LLP,฀the฀independent฀auditors฀appointed฀by฀the฀shareholders,฀in฀accordance฀with฀Canadian฀
generally฀accepted฀auditing฀standards.
Waterloo,฀Ontario
To฀the฀Shareholders฀of฀Research฀In฀Motion฀Limited฀
We฀have฀audited฀the฀consolidated฀balance฀sheets฀of฀Research฀In฀Motion฀Limited฀as฀at฀March฀1,฀2003฀
and฀March฀2,฀2002฀and฀the฀consolidated฀statements฀of฀operations฀and฀retained฀earnings฀(decit)฀
and฀cash฀ows฀for฀each฀of฀the฀years฀in฀the฀three฀year฀period฀ended฀March฀1,฀2003.฀These฀nancial฀
statements฀are฀the฀responsibility฀of฀the฀Company’s฀management.฀Our฀responsibility฀is฀to฀express฀an฀
opinion฀on฀these฀nancial฀statements฀based฀on฀our฀audits.
We฀conducted฀our฀audits฀in฀accordance฀with฀Canadian฀generally฀accepted฀auditing฀standards.฀Those฀
standards฀require฀that฀we฀plan฀and฀perform฀an฀audit฀to฀obtain฀reasonable฀assurance฀whether฀the฀
nancial฀statements฀are฀free฀of฀material฀misstatement.฀An฀audit฀includes฀examining,฀on฀a฀test฀basis,฀
evidence฀supporting฀the฀amounts฀and฀disclosures฀in฀the฀nancial฀statements.฀An฀audit฀also฀includes฀
assessing฀the฀accounting฀principles฀used฀and฀signicant฀estimates฀made฀by฀management,฀as฀well฀as฀
evaluating฀the฀overall฀nancial฀statement฀presentation.
In฀our฀opinion,฀these฀consolidated฀nancial฀statements฀present฀fairly,฀in฀all฀material฀respects,฀the฀
nancial฀position฀of฀the฀Company฀as฀at฀March฀1,฀2003฀and฀March฀2,฀2002฀and฀the฀results฀of฀its฀
operations฀and฀its฀cash฀ows฀for฀each฀of฀the฀years฀in฀the฀three฀year฀period฀ended฀March฀1,฀2003฀in฀
accordance฀with฀Canadian฀generally฀accepted฀accounting฀principles.
As฀described฀in฀notes฀1(k),฀1(l)฀and฀1(r)฀to฀these฀consolidated฀nancial฀statements,฀effective฀March฀3,฀2002฀
the฀Company฀adopted฀new฀accounting฀recommendations฀of฀the฀Canadian฀Institute฀of฀Chartered฀
Accountants฀Handbook฀with฀respect฀to฀impairment฀of฀long฀lived฀assets,฀goodwill฀and฀other฀intangible฀
assets฀and฀stock฀based฀compensation,฀respectively.
Toronto,฀Canada,฀March฀28,฀2003฀(except฀as฀to฀note฀14฀which฀is฀as฀of฀May฀28,฀2003).
Auditors’฀Report
Management’s฀
Responsibility฀for฀
Financial฀Reporting
Ernst฀&฀Young,฀LLP
Chartered฀Accountants
Zeifman฀&฀Company,฀LLP
Chartered฀Accountants
Dennis฀Kavelman
Chief฀Financial฀Ofcer
Mike฀Lazaridis
President฀&฀Co-CEO