NIG Prospectus - London Stock Exchange

Level: 8 – From: 8 – Thursday, August 9, 2007 – 2:20 pm – mac5 – 3776 Section 10b : 3776 Section 10bIndependent auditors’ reportTo the shareholders ofNational Industries Group Holding – SAKKuwaitReport on the Financial StatementsWe have audited the accompanying consolidated financial statements of National Industries GroupHolding (A Kuwaiti Shareholding Company) (“the parent company”) and subsidiaries (“the group”),which comprise the consolidated balance sheet as at 31 December 2006, and the relatedconsolidated statements of income, changes in equity and cash flows for the year then ended, anda summary of significant accounting policies and the explanatory notes.Management’s Responsibility for the Financial StatementsThe parent company’s management is responsible for the preparation and fair presentation ofthese consolidated financial statements in accordance with International Financial ReportingStandards. This responsibility includes: designing, implementing and maintaining internal controlrelevant to the preparation and fair presentation of consolidated financial statements that are freefrom material misstatement, whether due to fraud or error; selecting and applying appropriateaccounting policies; and making accounting estimates that are reasonable in the circumstances.Auditors’ ResponsibilityOur responsibility is to express an opinion on these consolidated financial statements based onour audit. We conducted our audit in accordance with International Standards on Auditing. Thosestandards require that we comply with ethical requirements and plan and perform the audit toobtain reasonable assurance whether the consolidated financial statements are free from materialmisstatement.An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the consolidated financial statements. The procedures selected depend on theauditors’ judgment, including the assessment of the risks of material misstatement of theconsolidated financial statements, whether due to fraud or error. In making those riskassessments, the auditor considers internal control relevant to the entity’s preparation and fairpresentation of the financial statements in order to design audit procedures that are appropriatein circumstances, but not for the purpose of expressing an opinion on the effectiveness of theentity’s internal control. An audit also includes evaluating the appropriateness of accountingpolicies used and the reasonableness of accounting estimates made by management, as well asevaluating the overall presentation of the financial statements.We believe that the audit evidence we have obtained is sufficient and appropriate to provide abasis for our audit opinion.OpinionIn our opinion, the consolidated financial statements present fairly, in all material respects, thefinancial position of the group as at 31 December 2006 and the results of its operations and itscash flows for the year then ended in accordance with International Financial Reporting Standards.Report on Other Legal and Regulatory RequirementsFurthermore, in our opinion proper books of account have been kept by the parent company andthe consolidated financial statements, together with the contents of the report of the parentcompany’s board of directors relating to these consolidated financial statements, are inaccordance therewith. We further report that we obtained all the information and explanations thatF-13