Asia Power Corporation Limited / 33

Independent Auditors' Report

TO THE MEMBERS OF ASIA POWER CORPORATION LIMITED
Report on the Financial Statements
We have audited the accompanying nancial statements of Asia Power Corporation Limited (the "company") and its subsidiaries (the "group") which comprise the statements of nancial position of the group and the company as at December 31, 2011, and the statement of comprehensive income, statement of changes in equity and statement of cash
ows of the group and the statement of changes in equity of the company for the year then ended, and a summary of signi cant accounting policies and other explanatory notes, as set out on pages 35 to 89.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation of nancial statements that give a true and fair view in accordance with the provisions of the Singapore Companies Act (the "Act") and Singapore Financial Reporting Standards and for devising and maintaining a system of internal accounting controls suf cient to provide reasonable assurance that assets are safeguarded against loss from unauthorised use or disposition; and transactions are properly authorised and that they are recorded as necessary to permit the preparation of true and fair pro t and loss accounts and balance sheets and to maintain accountability of assets.
Auditors' Responsibility
Our responsibility is to express an opinion on these nancial statements based on our audit. We conducted our audit in accordance with Singapore Standards on Auditing ("SSA"). Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the nancial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the nancial statements. The procedures selected depend on the auditor's judgement, including the assessment of the risks of material misstatement of the nancial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation of the nancial 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 entity's internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the nancial statements. We believe that the audit evidence we have obtained is suf cient and appropriate to provide a basis for our quali ed audit opinion.
Basis for Qualified Opinion
The carrying amount of the group's associate, Xi'an Zhouzhi Fengyuan Hydropower Development Co., Ltd ("Zhouzhi Fengyuan"), amounted to RMB33,054,000 as at December 31, 2011, and the group's share of its pro t after tax amounted to RMB2,709,000 for the year then ended. As disclosed in Note 13 to the nancial statements, the associate is audited by another rm of auditors. We were unable to ful l the requirements as required under SSA 600 - Special Considerations - Audits of Group Financial Statements over the work performed by the component auditor. We also have no access to the accounting books and records of Zhouzhi Fengyuan to perform alternative procedures as group auditors. Accordingly, we are not able to obtain suf cient appropriate audit evidence in respect of the carrying amount of the group's investment in Zhouzhi Fengyuan as at December 31, 2011 and the group's share of pro t after tax of Zhouzhi Fengyuan for the year then ended.

34 / Annual Report 2011

Independent Auditors' Report

TO THE MEMBERS OF ASIA POWER CORPORATION LIMITED
Opinion
In our opinion, except for the effects of the matter described in the Basis for Quali ed Opinion paragraph, the consolidated
nancial statements of the group and the statement of nancial position and statement of changes in equity of the company are properly drawn up in accordance with the provisions of the Act and Singapore Financial Reporting Standards so as to give a true and fair view of the state of affairs of the group and of the company as at December 31, 2011 and of the results, changes in equity and cash ows of the group and changes in equity of the company for the year ended on that date.
Report on Other Legal and Regulatory Requirements
In our opinion, the accounting and other records required by the Act to be kept by the company have been properly kept in accordance with the provisions of the Act.
Deloitte & Touche LLP Public Accountants and
Certi ed Public Accountants
Singapore
April 9, 2012

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