Page 47 - TreasuryChinaTrust

Treasury China Trust Annual Report 2010 50

INDEPENDENT AUDITORS’ REPORT

Unitholders of Treasury China Trust

Report on the financial statements

We have audited the accompanying financial statements of Treasury China Trust (the “Trust”) (constituted in the Republic of Singapore pursuant to a Trust Deed dated 19 May 2010 (the “Trust Deed”)) and its subsidiaries (the “Group”), which comprise the balance sheets of the Group and the Trust as at 31 December 2010, the consolidated income statement, consolidated statement of comprehensive income, consolidated statement of movements in unitholders’ funds and consolidated statement of cash flows of the Group for the period from 19 May 2010 (date of constitution) to 31 December 2010, and a summary of significant accounting policies and other explanatory information, as set out on pages 51 to 84.

Trustee-Manager’s responsibility for the financial statements

The Trustee-Manager is responsible for the preparation of financial statements that give a true and fair view in accordance with the provisions of the Singapore Business Trusts Act, Chapter 31A (the “Act”) and Singapore Financial Reporting Standards, and for devising and maintaining a system of internal accounting controls sufficient to provide a reasonable assurance that assets that are part of the trust property of the registered business trust are safeguarded against loss from unauthorised use or disposition; and transactions by the Trustee-Manager entered into on behalf of or purported to be entered into on behalf of the registered business trust are properly authorised and that they are recorded as necessary to permit the preparation of true and fair accounts and to maintain accountability of assets.

Auditors’ responsibility

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with Singapore Standards on Auditing. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about 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 auditor’s judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Trust’s preparation of financial statements that give a true and fair view 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 Trust’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the Trustee-Manager, 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.

Opinion

In our opinion, the consolidated financial statements of the Group and the balance sheet of the Trust are properly drawn up in accordance with the provisions of the Act and Singapore Financial Reporting Standards to give a true and fair view of the state of affairs of the Group and of the Trust as at 31 December 2010 and the results, changes in unitholders’ funds and cash flows of the Group for the period from 19 May 2010 to 31 December 2010.

Report on other legal and regulatory requirements

In our opinion, the accounting and other records required by the Act to be kept by the Trust have been properly kept in accordance with the provisions of the Act.

KPMG LLP

Public Accountants and Certified Public Accountants

Singapore 25 February 2011