F
AunTTORS gpal BATUS MC
@sc. All OF ARDITIM& INFORMATION FONFANT HAM .... -nave '-xi:14i0@S.&.1979
Date Preporods- ......... ..
oze-to
Dal as AppIlcotle
R
CONTINGENT LIARILITIM NOW
CURRENT ASSETS MMWTZD TO REALISZ LESS THAN ZOOK VAUM Holm/.
RIGHT TO SUSSMISz FOR slan MONZI
DMR MOUP PROFITS OR LOSSES ON Has* or FMD ASSETS NONEI
PAmems To DIRICTORS OF HOLDING COMAXY HONE/
SPECIAL AUDITORS REPORTS Co" sent to In Millbank
Er vS ON AUDMD CT3 & PROFIT 6 LOSS AMOUNT NOW
PO- NALAKE SUKET MNTS NONE/
KATMAI, TRANUTIONS INVOLVING DIRECTORS I"/uTTEL SENT To
MR, B a P.. Caraway
DA,TZ X@b=Wy.2X,1980
Director Director FROK Mr. R. A. Burton
REPORT OF THE AUDITORS TO THE DIRECTORS Of .......................
4:b-
CD
6A -T lWJWMS P.L.C. - MWMWA D8MWrM CWY P"MUCED PWWAW To I VLD' OF
COMW JUDWMW DAM WM 0 &AIE gE &SWMWTA &T *_ pMp MOM Ir Aj_ C#M No. C14K4M
BATUS INC.
December 31, 1979
ATTACMWT TO FORM F
Report of the Auditors to the Directors of BATUS Inc.
We have examined the attached Consolidation Accounts, con-
sisting of Schedules A, BI and G. of BATUS Inc.. an indirect
wholly-owned subsidiary of B.A.T. Industries Limited, a United
Kingdom corporation (the ultimate holding company), at Decem-
her 31. 1979 and for the fifteen months then ended and at Septem-
ber 30, 1976 and for the year then ended. Our examinations were
made in accordance with auditing standards generally accepted in
the United States and, accordingly, included such tests of the
accounting records and such other auditing procedures (which
included obtaining appropriate information and explanations) as
we considered necessary in the circumstances.
The primary purpose of the Consolidation Accounts which have
been prepared in accordance with the ultimate holding company's
)*pn onsolidated Accounts and supplementary letters
thereto is to enable the Directors of the ultimate holding compacy
to prepare its consolidated financial statements in accordance
with United Kingdom accounting standards and in compliance with
United Kingdom company law. These requirawate differ in several
respects from United States generally accepted accounting principles
to summarized in Schedule F to the Consolidation Accounts. Accor-
dingly. the accompanying Consolidation Accounts are not intended
to present financial position and results of operations in conformity
with accounting principles generally accepted in the United States.
Ve expect to report separately on the consolidated financial state-
meats for the years ended December 31, 1979 and September 30, 1979
prepared in accordance with accounting principles generally accepted
in the United ft&tes.
As noted in Schedules P. G. N. Q and T to the Consolidation
Accounts, BATUS Inc. engages in material transactions with affiliated
companies.
In our opinion, the Consolidation Accounts consisting of the
schedules referred to in the first paragraph above present fairly
a true and fair view of the state of affairs of RATUS Inc. at
December 31, 1979 and September 30. 1978 and of the results of its
operations for the periods then ended, on the basis of accounti ag
r%.)
specified by the Memorandum on Consolidated Accounts and the supple-
CD
mentary letters thereto, which basis has been consistently applied
r\j
during the period.
_Ij
carv pmwm PumAw To I VOLD. OF
JLAJ hViSTY40 P-LC- - MOOMMA OVKWWW cr AL_ CAW H& C14M4M
COMM JUOGMW OATO SIM $4 SrAlf OF
Our examinations have been made primarily for the purpose of
expressing an opinion on the Consolidation Accounts, taken as a
whole. The accompanying supplementary information, which has been
prepared in accordance with the ultinsto holding company's Memo-
randum on Consolidated Accounts &ad supplementary letters thereto,
consisting of Schodules 92, Cl, C2, L through 0, Q, T and Wl in
presented for analysis and ultimate holding company disclosure pur-
poses and 14 not GOC08SAry to present fairly a true and fair view
of the Consolidation Accounts referred to in the first paragraph
above. We have not examined the supplementary information for the
years ended December 31, 1979 and 1978 and, accordingly, we do not
express an opinion on It. Except for the Information not examined
by us, the above sated supplaimentary information has been subjected
to the toots and other auditing procedures applied in the examinations
of the Consolidation Accounts referred to in the first paragraph above
and, in our opinion, presents fairly a true aid fair view, on the
basis described above, In all respect& material in relation to the
Consolidation Accounts taken an a whole.
The statistical and other information on Schedules E2 and V
was not examined by us and, accordingly, we do not express an opinion
thereon.
This report is intended solely for the use of the ultimate
holding company's Board of Director*, management and outside auditors;
it should not be presented or quoted to anyone outside the Conqwny
without our prior consent.
adL, 44,'14
G U `iro
Louisville, Kentucky
February 28, 1980
r1J
C@l
NJ
-4
J:@-
PJ
N)
G.A.'T hNXJGTRM P-L-c- - UNNOMA Q8KWWM COPY PRMM MWMT TO VLD. OF
CAMM JUDQMW Oam son w frAll OF MkWAWA a, CME No. C14*405
Company Nam: BATIJS INC.
Actual For: December 31, 1979
Date Prepared- February 27, 1980
AnAGUM TO FORM F
The accompanying consolidation accounts do not include
MM DIC.'s direct and indirect wholly owned subsidiaries.
Consolidation of thee* subsidiaries would be roquired under
United States generally accepted accounting principles.
Separate consolidation accounts are issued with regard
to those subsidiaries as follows:
Brown and Williamson Industries, Inc.
Brown and William*= Tobacco Corporation
GLW*l-$&Us Retailing Corporation
The Kohl Corporation
Appleton Paper* Inc;wtiques
Germaine Montail Coo Corporation
S.A..T bMMMM PAX- - UNNIMMA DwmffoW I PROGUCM PUVAUAW To VNJD. OF
COMEW JUDGINEW OAM SO" IN OFAM OF AONNSWA, CAN No. C;14M4M=