| Annual Report 1999 | (For year ended March 31,1999) |
Report of Independent Certified Public Accountants |
| The Board of Directors and Shareholders Kawasaki Kisen Kaisha, Ltd. |
| We have examined the accompanying consolidated balance
sheets of Kawasaki Kisen Kaisha, Ltd. and its consolidated subsidiaries as of March 31,
1999 and 1998, and the related consolidated statements of income and retained earnings for
the years then ended, expressed in yen. Our examinations were made in accordance with
auditing standards, procedures and practices generally accepted and applied 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 consolidated financial statements referred to above, expressed in yen, present fairly the consolidated financial position of Kawasaki Kisen Kaisha, Ltd. and its consolidated subsidiaries at March 31, 1999 and 1998, and the consolidated results of their operations for the years then ended, in conformity with accounting principles and practices generally accepted in Japan consistently applied during the period except for the change, with which we concur, in the method of accounting for the recognition of trade accounts receivable relating to vessels as described in Note 2 to the consolidated financial statements. The U.S. dollar amounts in the accompanying consolidated financial statements with respect to the year ended March 31, 1999 are presented solely for convenience. Our examination 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 to the consolidated financial statements. |
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| Tokyo, Japan June 29, 1999 |