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Victor Company of Japan, Limited
54 Annual Report 2003
To the Stockholders and Board of Directors of Victor Company of Japan, Limited
We have audited the accompanying consolidated balance sheets of Victor Company of Japan, Limited (a Japanese corpo-
ration) and subsidiaries as of March 31, 2003 and 2002, and the related consolidated statements of operations, stock-
holders’ equity and cash flows for each of the three years in the period ended March 31, 2003, expressed in Japanese yen.
These consolidated financial statements are the responsibility of the Company’s management. Our responsibility is to
express an opinion on these consolidated financial statements based on our audits.
We conducted our audits 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 are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the
financial statements. An audit also includes assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a rea-
sonable basis for our opinion.
In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the consoli-
dated financial position of Victor Company of Japan, Limited and subsidiaries as of March 31, 2003 and 2002, and the
consolidated results of their operations and their cash flows for each of the three years in the period ended March 31,
2003 in conformity with accounting principles generally accepted in Japan as described in Note 1 to the consolidated
financial statements.
Without qualifying our opinion we draw attention to the following, as discussed in Note 2 to the consolidated financial
statements, effective April 1, 2000, Victor Company of Japan, Limited and domestic subsidiaries prospectively adopted
the new Japanese accounting standards for financial instruments and employees’ severance and retirement benefits and
the revised Japanese accounting standard for foreign currency translation. Also, as discussed in Note 3, effective April 1,
2002, Victor Company of Japan, Limited changed the method of accounting for royalty income and related expenses.
The consolidated financial statements as of and for the year ended March 31, 2003 have been translated into United
States dollars solely for the convenience of the reader. We have recomputed the translation and, in our opinion, the consoli-
dated financial statements expressed in Japanese yen have been translated into United States dollars on the basis set forth
in Note 1 to the consolidated financial statements.
Tokyo, Japan
June 27, 2003
Independent Auditors’ Report