DOOSAN HEAVY INDUSTRIES & CONSTRUCTION CO., LTD. AND ...

Independent Auditors’ ReportBased on a report originally issued in KoreanThe Board of Directors and ShareholdersDoosan Heavy Industries & Construction Co., Ltd.:We have audited the accompanying consolidated statements of financial position of Doosan Heavy Industries &Construction Co., Ltd. and its subsidiaries (the ‘‘Group’’) as of December 31, 2012 and 2011 and the relatedconsolidated statements of income, comprehensive income (loss), changes in equity and cash flows for theyears then ended. Management is responsible for the preparation and fair presentation of these consolidatedfinancial statements in accordance with Korean International Financial Reporting Standards. Our responsibilityis to express an opinion on these consolidated financial statements based on our audits.We did not audit the financial statements of four subsidiaries and two associates. The financial statements ofthe four subsidiaries reflect total assets constituting 19.82% and total revenues constituting 19.86% as of andfor the year ended 2012 (2011: 17.40% and 18.00%) of the related consolidated totals before eliminating intragrouptransactions. The Group’s investment in the two associates at December 31, 2012 was 2,930,833million won (2011: 2,847,677 million Won) and the Group’s equity in profits of the associates was 205,324million won (2011: 181,438 million Won). The financial statements of the four subsidiaries and the twoassociates were audited by other auditors whose reports were furnished to us, and our opinion, insofar as itrelates to the amounts included for the four subsidiaries and the two associates, is based solely on the reportsof the other auditors.We conducted our audits in accordance with auditing standards generally accepted in the Republic of Korea.Those standards require that we plan and perform the audit to obtain reasonable assurance about whether theconsolidated financial statements are free of material misstatement. An audit includes examining, on a testbasis, evidence supporting the amounts and disclosures in the consolidated financial statements. An auditalso includes assessing the accounting principles used and significant estimates made by management, as wellas evaluating the overall financial statement presentation. We believe that the audit evidence we haveobtained is sufficient and appropriate to provide a basis for our opinion.In our opinion, based on our audits and the reports of other auditors, the consolidated financial statementsreferred to above present fairly, in all material respects, the financial position of the Group as of December 31,2012 and 2011 and its financial performance and its cash flows for the years then ended in accordance withKorean International Financial Reporting Standards.