AUDITOR’S REPORT
Yue Hua Shen / Yan Zi (2014) No. 0002
ICPA filing number: 0420
To all shareholders of ****** Co., Ltd:
We have audited the accompanying financial statements of ****** Co., Ltd (“Your Company”), which comprise the balance sheet as of 31 D ecember 2013, the income statement,statement of changes in owner's equity and cash flow statement for the year then ended, and notes to the financial statements.
I. Management’s responsibility for the financial statements
Management of your Company is responsible for the preparation and fair presentation of financial statements. T his responsibility includes: (1) in accordance with the Accounting Standards f or Business Enterprises and its relevant provisions, preparing the financial statements and reflecting fair presentation; (2) designing, implementing and maintaining the necessary internal control in order to free financial statements from material misstatement, whether due to fraud or error.
II. Auditors' responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with Chinese Certified Public Accountants Auditing Standards. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable a ssurance whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors' judgment, including the assessment of the risks of material misstatement of the financial statements, w hether due to fraud or error. In making those risk assessments, we consider the internal control relevant to the preparation and fair presentation of the 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 internal control. An audit also includes evaluating the appropriateness o f accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate
to provide a basis for our audit opinion.
III. Opinion
In our opinion, the financial statements of your Company have been prepared in accordance with the Accounting Standards for Business Enterprise and its relevant provisions in all material respect, and present fairly the financial position of your Company as of 31 December 2013, and the results of its operations and cash flows for the year then ended.
Guangdong Huaxin Accounting Firm (general partner)
Guangdong, China
Chinese Certified Public Accountant:
Chinese Certified Public Accountant:
January 3, 2014
BALANCE SHEET
AS OF 31 DECEMBER 2013 Unit: RMB Yuan Company: ****** Co., Ltd
Asset Ending
balance Beginning
Balance
Liabilit ies and all parties’
equity (or shareholders'
equity)
Ending
balance
Beginning
Balance
Current Assets: Current liabilities: Monetary funds Short-term borrowings
Transaction financial asset Transaction financial liabilities
Notes receivable Notes payable
Account receivable Account payable
Account paid in advance Account received in
advance
Interest receivable Employee’s
compensation payable
Dividend receivable Tax payable
Other account receivable Interest payable
Inventories Dividend payable
Non-current assets due
within 1 year
Other account payable
Other current assets - - Non-current liabilities
due within 1 year
Total current assets - Other current liabilities
Non-current assets: Total current liabilities - Available for sale
financial assets
Non-current liabilities:
Maturity investments Long-term borrowings
Long-term account
receivables
Bonds payable
Long-term equity investment Long-term account payable
Investing property Special payables
Fixed asset Accrued liabilities Project in construction Deferred tax liabilities
Engineering material Other non-current。