[' ', 'BATUS', 'Inc.', '1987', 'Financial', 'Revie', 'Management’s', 'Responsibility', 'for', 'Financial', 'Reporting', 'The', 'following', 'consolidated', 'financial', 'statements', 'of', 'BATUS', 'Inc.', 'were', 'prepared', 'by', 'management', 'which', 'is', 'responsible', 'for', 'their', 'integrity', 'and', 'objectivity.', 'The', 'financial', 'statements', 'have', 'been', 'prepared', 'in', 'conformity', 'with', 'generally', 'accepted', 'accounting', 'principles', 'and', 'necessarily', 'include', 'amounts', 'which', 'represent', 'the', 'best', 'estimates', 'and', 'judgments', 'of', 'manage-', 'ment.', 'Management', 'is', 'further', 'responsible', 'for', 'maintaining', 'a', 'system', 'of', 'internal', 'accounting', 'controls,', 'designed', 'to', 'provide', 'reasonable', 'assurance', 'that', 'assets', 'are', 'safeguarded,', 'established', 'policies', 'and', 'procedures', 'are', 'followed', 'and', 'transactions', 'are', 'properly', 'executed', 'and', 'reported,', 'The', 'system', 'is', 'continually', 'reviewed', 'for', 'its', 'effectiveness', 'and', 'is', 'augmented', 'by', 'written', 'policies', 'and', 'guidelines,', 'the', 'careful', 'selection', 'and', 'training', 'of', 'qualified', 'personnel,', 'and', 'a', 'strong', 'program', 'of', 'internal', 'audit.', 'Deloitte', 'Haskins', '&', 'Sells,', 'certified', 'public', 'accountants,', 'are', 'engaged', 'to', 'examine', 'the', 'consolidated', 'financial', 'statements', 'of', 'BATUS', 'Inc.', 'and', 'issuc', 'a', 'report', 'thercon.', 'Their', 'examination', 'is', 'conducted', 'in', 'accordance', 'with', 'generally', 'accepted', 'auditing', 'standards', 'and', 'includes', 'an', 'objective', 'review', 'and', 'evaluation', 'of', 'internal', 'accounting', 'controls', 'to', 'the', 'extent', 'deemed', 'necessary', 'by', 'them.', 'The', 'Board', 'of', 'Directors,', 'through', 'the', 'Audit', 'Committee', 'of', 'the', 'Board,', 'is', 'responsible', 'for:', '(1)', 'assuring', 'that', 'management', 'fulfills', 'its', 'respansibili-', 'ties', 'in', 'the', 'preparation', 'of', 'the', 'financial', 'statements;', 'and', '(2)', 'engaging', 'the', 'certified', 'public', 'accountants', 'with', 'whom', 'the', 'Committee', 'reviews', 'the', 'scope', 'of', 'the', 'audits', 'and', 'the', 'accounting', 'principles', 'to', 'be', 'applied', 'in', 'financial', 'reporting.', 'The', 'Audit', 'Committee', 'meets', 'regularly', '(separately', 'and', 'jointly)', 'with', 'the', 'certified', 'public', 'accountants,', 'repr:', 'sentatives', 'of', 'management,', 'and', 'their', 'internal', 'auditors', 'to', 'review', 'the', 'activities', 'of', 'each', 'and', 'to', 'ensure', 'that', 'each', 'is', 'properly', 'discharging', 'its', 'responsibilities,', 'To', 'ensure', 'complete', 'independence,', 'Deloitte', 'Haskins', '&', 'Sells', 'has', 'full', 'and', 'free', 'access', 'to', 'meet', 'with', 'the', 'Audit', 'Committee,', 'without', 'management', 'representatives', 'present,', 'to', 'discuss', 'the', 'results', 'of', 'their', 'examination', 'and', '‘their', 'opinions', 'on', 'the', 'adequacy', 'of', 'internal', 'accounting', 'controls', 'and', 'the', 'quality', 'of', 'financial', 'reporting.', 'Mo', 'osm', 'Kind', 'le', 'Henry', 'F.', 'Frigon', 'Leonard', 'W.', 'Arentsen', 'President', '&', 'Executive', 'Vice', 'President', 'Chief', 'Executive', 'Officer', ' ', '\\', 'I', 'Financial', 'Revterw', '|', 'Consolidated', 'Financial', 'Statements:', 'Statements', 'of', 'Income', '|', 'and', 'Retained', 'Earnings', 'a2', '|', 'Balance', 'Sheets', 'M', 'Aammemenponanges', "'", 'in', 'Financial', 'Position', '26', 'q', ' ', 'Management’s', 'Discussion', '&', 'Analysis:', ' ', 'Statements', 'of', 'Income', '23', 'Financial', 'Condition', '23', 'Summary', 'of', 'Accounting', 'Polivies', '27', ' ', 'Nozes', 'to', 'Consolidated', 'Financtal', 'Statements', '28-34', ' ', 'Ropart', 'of', 'Certified', 'Public', 'Aevountants', '34', ' ', 'o', '=', 'oO', '~', 'a', '[oy]', 'wo', '©', ' ']