Consolidated Financial Statements for the Year Ended March 31, 2017, and Independent Auditor's Report
INDEPENDENT AUDITOR'S REPORTTo the Board of Directors of AVEX GROUP HOLDINGS INC.:
We have audited the accompanying consolidated balance sheet of AVEX GROUP HOLDINGS INC. and its subsidiaries as of March 31, 2017, and the related consolidated statements of income, comprehensive income, changes in equity, and cash flows for the year then ended, and a summary of significant accounting policies and other explanatory information, all expressed in Japanese yen.
Management's Responsibility for the Consolidated Financial StatementsManagement is responsible for the preparation and fair presentation of these consolidated financial statements in accordance with accounting 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 misstatement, whether due to fraud or error.
Auditor's ResponsibilityOur responsibility is to express an opinion on these consolidated financial statements based on our audit. We conducted our audit 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 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 the auditor's judgment, 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, the auditor considers 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, but 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.
OpinionIn our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the consolidated financial position of AVEX GROUP HOLDINGS INC. and its subsidiaries as of March 31, 2017, and the consolidated results of their operations and their cash flows for the year then ended in accordance with accounting principles generally accepted in Japan.
Convenience TranslationOur audit also comprehended the translation of Japanese yen amounts into U.S. dollar amounts and, in our opinion, such translation has been made in accordance with the basis stated in Note 1 to the consolidated financial statements. Such U.S. dollar amounts are presented solely for the convenience of readers outside Japan.
June 26, 2017
Millions of Yen | Thousands of U.S. Dollars (Note 1) | ||
ASSETS | 2017 | 2016 | 2017 |
CURRENT ASSETS: | ||||||||
Cash and cash in banks (Notes 14 and 17) | ¥ 24,298 | ¥ 21,107 | $ 216,579 | |||||
Marketable securities (Notes 3 and 14) | 1,003 | |||||||
Notes and accounts receivable-trade (Note 14) | 20,122 | 21,271 | 179,356 | |||||
Inventories: | ||||||||
Merchandise and finished products | 1,333 | 1,300 | 11,881 | |||||
Programs and work in process | 3,736 | 6,616 | 33,300 | |||||
Raw materials and supplies | 381 | 610 | 3,396 | |||||
Deferred tax assets (Note 10) | 4,732 | 3,742 | 42,178 | |||||
Advance payments-trade | 1,616 | 1,226 | 14,404 | |||||
Prepaid expenses | 1,169 | 1,280 | 10,419 | |||||
Prepaid royalties | 3,889 | 2,002 | 34,664 | |||||
Other | 2,618 | 3,711 | 23,335 | |||||
Allowance for doubtful accounts | (204 | (252 | (1,818 | |||||
Total current assets | 63,693 | 63,620 | 567,724 | |||||
PROPERTY, PLANT AND EQUIPMENT (Note 4): | ||||||||
Land | 29,770 | 29,770 | 265,353 | |||||
Buildings and structures-net | 1,001 | 1,492 | 8,922 | |||||
Construction in progress | 8,179 | 90 | 72,903 | |||||
Other property-net | 658 | 801 | 5,865 | |||||
Total property, plant and equipment | 39,609 | 32,154 | 353,052 | |||||
INVESTMENTS AND OTHER ASSETS: | ||||||||
Investment securities (Notes 3 and 14) | 5,819 | 5,310 | 51,867 | |||||
Long-term prepaid expenses | 42 | 147 | 374 | |||||
Intangible assets | 4,599 | 5,457 | 40,992 | |||||
Deferred tax assets (Note 10) | 2,016 | 1,943 | 17,969 | |||||
Other assets | 2,940 | 2,839 | 26,205 | |||||
Allowance for doubtful accounts | (323 | (263 | (2,879 | |||||
Total investments and other assets | 15,095 | 15,434 | 134,548 | |||||
TOTAL | ¥ 118,399 | ¥ 111,208 | $ 1,055,343 |
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Millions of Yen | Thousands of U.S. Dollars (Note 1) | ||
LIABILITIES AND EQUITY | 2017 | 2016 | 2017 |
CURRENT LIABILITIES: | |||
Notes and accounts payable-trade (Note 14) | ¥ 2,198 | ¥ 2,020 | $ 19,591 |
Short-term bank loans (Notes 5 and 14) | 10,500 | 8,500 | 93,591 |
Current portion of long-term loans (Notes 5 and 14) | 800 | 7,130 | |
Current portion of long-term bonds (Notes 5 and 14) | 720 | ||
Accounts payables-other (Note 14) | 19,926 | 24,356 | 177,609 |
Accrued royalties (Note 14) | 8,139 | 8,748 | 72,546 |
Income taxes payable (Note 14) | 2,231 | 865 | 19,885 |
Provision for bonuses | 725 | 1,066 | 6,462 |
Provision for sales returns | 4,328 | 4,163 | 38,577 |
Valuation reserve for inventory purchase commitments | 763 | 6,800 | |
Provision for loss on business liquidation | 126 | 1,123 | |
Provision for point card certificates | 45 | 401 | |
Other | 7,243 | 5,038 | 64,560 |
Total current liabilities-(Forward) | ¥ 57,029 | ¥ 55,478 | $ 508,325 |
Avex Group Holdings Inc. published this content on 19 September 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 19 September 2017 05:33:02 UTC.
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