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68 SHARP CORPORATION
Financial Section
Independent Auditor’s Report
To the Board of Directors of Sharp Corporation:
We have audited the accompanying consolidated financial statements of Sharp Corporation and its consolidated subsidiaries, which comprise
the consolidated balance sheets as at March 31, 2013, 2012 and 2011, and the consolidated statements of operations, statements of com-
prehensive income, statements of changes in net assets and statements of cash flows for the years then ended, and a summary of significant
accounting policies and other explanatory information.
Management’s Responsibility for the Consolidated Financial Statements
Management is responsible for the preparation and fair presentation of these consolidated financial statements in accordance with account-
ing principles generally accepted in Japan, and for such internal control as management determines is necessary to enable the preparation of
consolidated financial statements that are free from material misstatements, whether due to fraud or error.
Auditor’s Responsibility
Our responsibility is to express an opinion on these consolidated financial statements based on our audits. We conducted our audits in ac-
cordance with auditing standards generally accepted in Japan. Those standards require that we comply with ethical requirements and plan and
perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated financial statements.
The procedures selected depend on our judgement, including the assessment of the risks of material misstatement of the consolidated financial
statements, whether due to fraud or error. In making those risk assessments, we consider internal control relevant to the entity’s preparation
and fair presentation of the consolidated financial statements in order to design audit procedures that are appropriate in the circumstances,
while the objective of the financial statement audit is not for the purpose of expressing an opinion on the effectiveness of the entity’s internal
control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates
made by management, as well as evaluating the overall presentation of the consolidated financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Opinion
In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of Sharp Corporation and its
consolidated subsidiaries as at March 31, 2013, 2012 and 2011, and their financial performance and cash flows for the years then ended in
accordance with accounting principles generally accepted in Japan.
Emphasis of Matter
Without qualifying our opinion, we draw attention to Note 17 “Significant Subsequent Events” to the consolidated financial statements as follows:
(1) The Company changed reportable segments for the year ending March 31, 2014.
(2) The Company passed a resolution at its board of directors meeting held on May 14, 2013 to submit a proposal on reduction of common
stock, capital reserve and legal reserve, and on appropriation of surpluses to the Ordinary General Meeting of Shareholders to be held on
June 25, 2013, and the resolution was then approved.
(3) The Company decided at the board of directors meeting held on May 30, 2013, to continue measures to reinforce business foundations
with the reduction of labor costs and informed the labor union of subjects that required labor union discussion on the same day that were
accepted by the labor union on June 20, 2013.
(4) The Company passed a resolution at its board of directors meeting held on June 7, 2013 to issue new shares by third party allotment and
the payment was fully made on June 24, 2013.
(5) The Company signed the agreement on June 25, 2013 regarding renewal of the agreement which was signed in September 27, 2012 for
the current syndicated loan of ¥360 billion due on June 30, 2013, and the arrangement for new syndicated loan of ¥150 billion.
Convenience Translation
The U.S. dollar amounts in the accompanying consolidated financial statements with respect to the year ended March 31, 2013 are presented
solely for convenience. Our audit also included the translation of yen amounts into U.S. dollar amounts and, in our opinion, such translation
has been made on the basis described in Note 1.(a) to the consolidated financial statements.
June 25, 2013
Osaka, Japan