FEDERAL INTERNATIONAL (2000) LTD

Federal International (2000) Ltd AR 2002and its Subsidiary Companies34Auditor’s Reportto the Members of Federal International (2000) LtdWe have audited the financial statements of Federal International (2000) Ltd set out on pages 35 to 75. Thesefinancial statements comprise the balance sheets of the Company and of the Group as at 31 December 2002, theprofit and loss accounts and statements of changes in equity of the Company and of the Group and cash flows ofthe Group for the year ended 31 December 2002, and notes thereto. These financial statements are the responsibilityof the Company’s Directors. Our responsibility is to express an opinion on these financial statements based on ouraudit.We conducted our audit in accordance with Singapore Standards on Auditing. Those Standards require that we planand perform the audit to obtain reasonable assurance about whether the financial statements are free of materialmisstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures inthe financial statements. An audit also includes assessing the accounting principles used and significant estimatesmade by the Directors, as well as evaluating the overall financial statement presentation. We believe that our auditprovides a reasonable basis for our opinion.In our opinion,(a)the financial statements are properly drawn up in accordance with the provisions of the Singapore CompaniesAct (Act) and Singapore Statements of Accounting Standard and so as to give a true and fair view of:-(i)(ii)the state of affairs of the Company and of the Group as at 31 December 2002, the results andchanges in equity of the Company and of the Group and cash flows of the Group for the year thenended; andthe other matters required by section 201 of the Act to be dealt with in the financial statements;(b)the accounting and other records, and the registers required by the Act to be kept by the Company and bythose subsidiary companies incorporated in Singapore of which we are the auditors have been properly keptin accordance with the provisions of the Act.We have considered the financial statements of the subsidiary companies whose financial statements have beenincluded in the consolidated financial statements for which we have not acted as auditors and the auditors’ reportson those subsidiary companies. These subsidiary companies and other subsidiary companies which are not requiredto be audited in their respective countries of incorporation are stated in Note 3 to the financial statements.We are satisfied that the financial statements of the subsidiary companies that have been consolidated with thefinancial statements of the Company are in form and content appropriate and proper for the purposes of thepreparation of the consolidated financial statements, and we have received satisfactory information and explanationsas required by us for those purposes.The auditors’ reports on the financial statements of the subsidiary companies were not subject to any qualificationand in respect of subsidiary companies incorporated in Singapore did not include any comment made under section207(3) of the Act.ERNST & YOUNGCertified Public AccountantsSingapore17 April 2003