Port Waratah Coal Services Limited

Deloitte Touche TohmatsuA.B.N. 74 490 121 060Grosvenor Place225 George StreetSydney NSW 2000PO Box N250 Grosvenor PlaceSydney NSW 1220 AustraliaDX 10307SSETel: +61 (0) 2 9322 7000Fax: +61 (0) 2 9322 7001www.deloitte.com.auIndependent Auditor’s Reportto the members of Port Waratah Coal ServicesLimitedWe have audited the accompanying financial report of Port Waratah Coal Services Limited, whichcomprises the statement of financial position as at 31 December 2011, the statement of comprehensiveincome, the statement of cash flows and the statement of changes in equity for the year ended on thatdate, notes comprising a summary of significant accounting policies and other explanatoryinformation, and the directors’ declaration of the consolidated entity comprising the company and theentities it controlled at the year’s end or from time to time during the financial year as set out on pages17 to 38.Directors’ Responsibility for the Financial ReportThe directors of the company are responsible for the preparation of the financial report that gives atrue and fair view in accordance with Australian Accounting Standards and the Corporations Act2001 and for such internal control as the directors determine is necessary to enable the preparation ofthe financial report that gives a true and fair view and is free from material misstatement, whether dueto fraud or error.Auditor’s ResponsibilityOur responsibility is to express an opinion on the financial report based on our audit. We conductedour audit in accordance with Australian Auditing Standards. Those standards require that we complywith relevant ethical requirements relating to audit engagements and plan and perform the auditto obtain reasonable assurance whether the financial report is free from material misstatement.An audit involves performing procedures to obtain audit evidence about the amounts and disclosuresin the financial report. The procedures selected depend on the auditor’s judgement, including theassessment of the risks of material misstatement of the financial report, whether due to fraud or error.In making those risk assessments, the auditor considers internal control, relevant to the entity’spreparation of the financial report that gives a true and fair view, in order to design audit proceduresthat are appropriate in the circumstances, but not for the purpose of expressing an opinion on theeffectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness ofaccounting policies used and the reasonableness of accounting estimates made by the directors, aswell as evaluating the overall presentation of the financial report.We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basisfor our audit opinion.Liability limited by a scheme approved under Professional Standards LegislationMember of Deloitte Touche Tohmatsu Limited39