To the Board of Directors and Stockholders of Kobe Steel, Ltd.
We have audited the accompanying non-consolidated balance sheets of
Kobe Steel, Ltd. (a Japanese corporation) at March 31, 1999 and 1998, and
the related non-consolidated statements of operations, stockholders'
equity and cash flows for the years then ended, expressed in Japanese yen.
Our audits were made in accordance with generally accepted auditing
standards in Japan and, accordingly, included such tests of the accounting
records and such other auditing procedures as we considered necessary in
the circumstances.
In our opinion, the non-consolidated financial statements referred to
above present fairly the non-consolidated financial position of Kobe
Steel, Ltd. at March 31, 1999 and 1998 and the non-consolidated results of
its operations and cash flows for the years then ended in conformity with
generally accepted accounting principles in Japan applied on a consistent
basis, except for the change, with which we concur, in the method of
accounting for expenses in respect of the development of new products and
research into and the application of new technologies as explained in Note
2 (8).
We have also reviewed the translation of the statements mentioned above
into U.S. dollars on the basis described in Note 1. In our opinion, such
statements have been properly translated on such basis.
Osaka, Japan June 29, 1999
(Member Firm of Andersen
Worldwide SC)
Statement on Accounting Principles and Auditing Standards
This statement is to remind users that accounting principles and auditing
standards and their application in practice may vary among nations and
therefore could affect, possibly materially, the reported financial
position and results of operations. The accompanying financial statements
are prepared based on accounting principles generally accepted in Japan,
and the auditing standards and their application in practice are those
generally accepted in Japan. Accordingly, the accompanying financial
statements and the auditors' report presented above are for users familiar
with Japanese accounting principles, auditing standards and their
application in practice. |