Nikki co.,ltd.

 Consolidated Balance Sheet

As of September 30, 2005. September 30,2006. March 31,2006
( in thousands yen )

	September 30,2005	September 30,2006	March 31,2006
Assets
Current assets
Cash and cash equivalents	671,711	1,025,611	1,236,947
Receivables	2,528,523	2,384,342	2,509,592
Inventories	1,371,607	1,643,815	1,677,472
Short term loan receivable	804,197	103,615	703,902
Other current assets	479,435	542,770	298,650
Allowance for doubtful accounts	Δ 12,064	Δ 9,344	Δ 11,783
Total current assets	5,843,411	5,690,810	6,414,783
Fixed assets
Tangible Fixed assets
Buildings & construction	2,270,145	2,230,405	2,252,138
Machinery and equipment	1,067,393	1,226,205	1,102,238
Land	196,136	196,633	196,938
Other fixed assets	690,388	835,701	611,208
Total tangible fixed assets	4,224,063	4,488,947	4,162,523
Total intangible fixed assets	160,446	352,634	414,790
Investments
Investment securities	1,907,113	2,145,781	2,211,816
Money on deposit	-	864,736	-
Other investments	127,953	127,905	135,519
Total investments and others	2,035,066	3,138,423	2,347,335
Total fixed assets	6,419,576	7,980,004	6,924,649
Total assets	12,262,987	13,670,815	13,339,432

As of September 30, 2005. September 30,2006. March 31,2006
( in thousands yen )

	September 30,2005	September 30,2006	March 31,2006
Liabilities and shareholders' investment
Current liabilities
Account payable and domestic Notes	1,880,700	1,916,268	2,221,876
Short-term debt and current portion of long term debt	462,000	490,000	490,000
Short-term-bond and current portion of long term bond	100,000	-	-
Bonus payment reserve	237,456	235,783	269,096
Other current liabilities	1,151,240	1,066,893	1,044,607
Total current liabilities	3,831,398	3,708,945	4,025,580
Fixed Liabilities
bond	-	100,000	100,000
Long-term debt and current portion of long term debt	-	910,840	-
Accrued employees retirement benefit	2,072,628	2,045,289	2,097,480
Director's retirement allowances	105,198	119,190	117,453
Custody deposit	731,735	731,735	731,735
Other fixed liabilities	316,486	359,915	355,722
Total fixed liabilities	3,226,048	4,266,970	3,402,391
Total liabilities	7,057,446	7,975,916	7,427,971
Minority interest	241,381	-	373,670
Shareholders' fund
Paid up capital	500,000	-	500,000
Capital surplus	26,902	-	31,169
Accumulated earnings	3,929,726	-	4,278,667
Valuation of securities	806,404	-	987,397
Translation gains and losses	8,913	-	47,427
Treasury stock	Δ 307,787	-	Δ 306,872
Total shareholders' fund	4,964,159	-	5,537,790
Total liabilities and shareholders' fund	12,262,987	-	13,339,432
Shareholders' fund
Paid up capital	-	500,000	-
Capital surplus	-	49,674	-
Accumulated earnings	-	4,169,924	-
Treasury stock	-	Δ 293,091	-
Total Shareholders' fund	-	4,426,507	-
Valuation and translation
Valuation of securities	-	948,173	-
Translation gains and losses	-	30,464	-
Total valuation and translation	-	978,638	-
Minority interest	-	289,753	-
Total equity	-	5,694,899	-
Total liabilities and equity	-	13,670,815	-

 Consolidated Statement of Income

For the fiscal years ended of Sept 30, 2005.Sept 30, 2006. March 31, 2006
( in thousands yen )

	From April 1,2005 to September 30,2005		From April 1,2006 to September 30,2006		From April 1,2005 to March 31,2006
Net Sales		6,521,853		6,271,580		13,472,324
Cost of Sales		5,122,933		5,236,557		10,763,564
Gross Profit		1,398,919		1,035,022		2,708,760
Selling and General Expenses		928,195		949,255		1,891,422
Operating Income		470,724		85,767		817,337
Nonoperating income
Interest Income	3,757		1,711		5,685
Dividend earned	24,129		28,264		34,801
Exchange gain	51,305		2,853		85,193
Royalty income	11,107		4,162		27,536
Other Income	11,254	101,554	6,122	43,114	28,705	181,923
Nonoperating Expenses
Interest paid	2,927		9,775		5,338
loss on abolition of inventory	3,035		5,110		3,681
Investment loss by equity method	-		-		-
Other Expenses	1,284	7,248	1,268	16,154	4,114	13,134
Ordinary Profit		565,030		112,727		986,125
Special profit
Profit from sales of fixed assets	7,755		-		8,276
Profit from sales of securitis sold	-		31,905		4,267
Profit from sales of investment securitis to a related company	13,986		-		13,986
Cancelation of allowance for bad debt	3,154	24,896	3,009	34,914	2,869	29,400
Special loss
Loss on sales of golf membership	1,050		-		1,050
Loss on retirement of fixed assets	35,504	36,554	8,012	8,012	77,779	78,829
Income before income taxes and minority interest		553,373		139,629		936,696
Income tax, Local tax, Business tax	219,788		63,800		392,478
Income tax adjustment	-	219,788	-	63,800	Δ145,119	247,359
Minority interest		9,416		22,716		16,227
Net med-term income		324,168		53,112		673,110

 Consolidated Statement of Surplus

As of September 30, 2005. September 30,2006. March 31,2006

( in thousands yen )

	From April 1,2005 to September 30,2005	From April 1,2006 to September 30,2006	From April 1,2005 to March 31,2006
Capital Surplus
Capital surpl0us at the beginning of year	26,902	31,169	26,902
Increase of Capital surplus
Margin of treasury stock acquisition	-	18,504	4,267
Capital surplus at the end of year	26,902	49,674	31,169
Retained earnings
Retained earnings at the beginning of year	3,695,496	4,278,667	3,695,496
Net income of the year	324,168	53,112	673,110
Decrease of retained earnings of the year
1. dividend	68,505	137,866	68,505
2. directors' bonus	15,000	21,000	15,000
3. employee incentive benefit fund	1,404	2,989	1,404
4. decrease by newly consolidation	5,029	-	5,029
Total decrease of retained earnings of the year	89,938	161,855	89,938
Retained earnings at the half (end) of the year	3,929,726	4,169,924	4,278,667

 Consolidated Statement of Cash Flows

For the fiscal years ended of Sept 30, 2005.Sept 30, 2006. March 31, 2006
( in thousands yen )

	From April 1,2005 to September 30,2005	From April 1,2006 to September 30,2006	From April 1,2005 to March 31,2006
Cash flow from operation activities
income before income taxes and minority interest	553,373	139,629	936,696
depreciation	324,522	352,712	744,643
increase and decrease in employees of retirement benefit	33,438	Δ 52,190	58,289
increase and decrease in director's retirement allowence	Δ 33,940	1,736	Δ 21,685
increase and decrease in bad debt allowence	Δ 3,154	Δ 2,438	Δ 3,435
increase and decrease in bonus payment reserve	Δ 7,734	Δ 33,312	23,904
interest Income & dividend income	Δ 27,887	Δ 29,975	Δ 40,486
interest paid	2,927	9,775	5,338
profit from sales of investment to related company	Δ 13,986	-	Δ 13,986
capital gain on securities sale	-	Δ 31,905	Δ 4,267
profit from sales of fixed assets	Δ 7,755	-	Δ 8,276
loss on retirement of fixed assets	35,504	8,012	77,779
loss from sale of golf club membership	1,050	-	1,050
increase and decrease in receivable	Δ 199,239	118,368	Δ 158,982
increase and decrease in inventory	42,633	18,182	Δ 225,462
increase and decrease in other assets	Δ 250,582	Δ 235,988	Δ 13,219
increase and decrease in payable	Δ 109,875	Δ 281,440	182,052
increase and decrease in other liabilities	200,422	256,145	Δ 22,813
depreciation of long-term prepaid expense	11,166	11,821	23,662
payment of director's bonus	Δ 15,000	Δ 22,000	Δ 15,000
sub total	535,882	227,132	1,525,800
received interet income and dividend income	27,887	29,975	40,486
interest payment	Δ 2,733	Δ 9,938	Δ 4,801
corporate tax payment	Δ 106,828	Δ 231,588	Δ 257,072
Cash flow from operation activities	454,207	15,580	1,304,414

For the fiscal years ended of March 31, 2005, March 31, 2006
( in thousands yen )

	From April 1,2005 to September 30,2005	From April 1,2006 to September 30,2006	From April 1,2005 to March 31,2006
Cash flow from Investing activities
paid for time deposit	Δ 3,601	Δ 46,801	Δ 4,802
receipt from time deposit withdrawal	22,400	-	20,000
payment for acquisition of subsidiary' stock	Δ 16,367	Δ 79,800	Δ 16,367
sale of investment securities to relatead company	73,153	-	73,153
payment on loan	-	-	Δ 500
receipt on loan repayment	4,168	2,155	7,186
payment for Money on deposit	-	Δ 864,736	-
other investment payment	Δ 1,208	Δ 692	Δ 12,528
other investment income	12,280	-	2,217
acquisition of tangible fixed asset	Δ 319,540	Δ 720,698	Δ 574,465
sale of tangible fixed asset	28,992	298	31,078
acquisition of intangible fixed asset	Δ 21,584	Δ 140	Δ 303,500
Net Cash flow from Investing activities	Δ 221,306	Δ 1,710,414	Δ 778,528
Financing activities
increase and decrease of short term loan	38,000	-	88,000
Income for long term loan	-	910,832	-
repayment for long term loan	Δ 62,500	-	Δ 84,500
bond issue Income	-	-	100,000
bond redemption payment	-	-	Δ 100,000
acquisition of treasury stock	Δ 288,087	Δ 198	Δ 288,325
subsidiaries' income from sale of parent company stock	-	91,770	13,145
subsidiaries' payment for acquisition of parent company stock	-	-	106,776
dividend payment	Δ 68,505	Δ 137,866	Δ 68,505
dividend payment for minority shareholders	Δ 3,120	Δ 7,272	Δ 3,120
Net Cash flow from financing activities	Δ 384,213	857,264	Δ 236,529
cash and cash equivalent exchage deference	18,037	Δ 20,453	39,247
increase and decrease in cash and cash equivalents	Δ 133,274	Δ 858,022	328,603
cash and cash equivalent outstanding at the start of the period	1,554,123	1,904,746	1,554,123
increase by definition of cash equivalents by increase of a consolidated subsidiary	22,019	-	22,019
cash and cash equivalent outstanding at the end of the period	1,442,868	1,046,724	1,904,746

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